A Sneak Peek Into Corning’s Upcoming Earnings

S&P 500 (NYSE:SPY) component Corning (NYSE:GLW) will unveil its latest earnings on Wednesday, July 25, 2012. Corning provides glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.

Corning Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 32 cents per share, a decline of 33.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 33 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 32 cents during the last month. Analysts are projecting profit to rise by 23.3% compared to last year’s $1.35.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 30 cents a share versus the estimate of profit of 28 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit fell 38.2% to $462 million (30 cents a share) from $748 million (47 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.2% to $1.92 billion from $1.92 billion.

Stock Price Performance: Between April 24, 2012 and July 23, 2012, the stock price fell $1.09 (-8.25%), from $13.21 to $12.12. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 11, 2012, when shares rose for eight straight days, increasing 10.3% (+$1.34) over that span. It saw one of its worst periods between July 3, 2012 and July 16, 2012 when shares fell for nine straight days, dropping 6.3% (-83 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.5 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 17.1% in the second quarter of the last fiscal year, 29.5% in the third quarter of the last fiscal year and 6.9%in the fourth quarter of the last fiscal year before dropping in the first quarter.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 53% in the fourth quarter of the last fiscal year and then again in the first quarter.

Analyst Ratings: With 10 analysts rating the stock as a buy, three rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Wall St. Revenue Expectations: Analysts predict a rise of 1% in revenue from the year-earlier quarter to $2.02 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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