Corning Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Corning (NYSE:GLW) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. 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 net income of 33 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 34 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 33 cents during the last month. For the year, analysts are projecting profit of $1.29 per share, a decline of 26.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of 35 cents per share against a mean estimate of profit of 33 cents per share. In the second quarter, it missed forecasts by one cent.

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A Look Back: In the third quarter, profit fell 35.8% to $521 million (35 cents a share) from $811 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.8% to $2.04 billion from $2.08 billion.

Here’s how Corning traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts predict a rise of 10.1% in revenue from the year-earlier quarter to $2.08 billion.

Analyst Ratings: There are 11 out of 20 analysts surveyed (55%) rating Corning a buy.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 0.2% in the first quarter and 4.8% in second quarter before falling again in the third quarter.

Heading into this earnings announcement, net income has dropped 41.4% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.79 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. The company regressed in this liquidity measure from 4.96 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5% to $1.99 billion while assets rose 1.5% to $9.52 billion.

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