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Will Corning's (GLW) Top-Line Contraction Impact Q4 Earnings?
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Corning Incorporated (GLW - Free Report) is scheduled to report fourth-quarter 2022 results before the opening bell on Jan 31. In the last reported quarter, the communications components provider matched the Zacks Consensus Estimate of 51 cents. Corning delivered a trailing four-quarter earnings surprise of 4.4%, on average. The company is expected to have recorded lower revenue year over year due to the challenging macroeconomic environment.
Factors at Play
During the fourth quarter, Corning continued its innovation and rolled out Corning Gorilla Glass Victus 2, a new glass composition that improves its ability to withstand drops on tough surfaces like concrete. With its ongoing innovation, Corning is expected to meet these requirements and guarantee endurance. More than 8 billion devices currently have Gorilla Glass installed, making it the top choice of the major smartphone manufacturers. The addition of Gorilla Glass Victus 2 will further strengthen its Gorilla Glass portfolio. Several smartphone manufacturers are already evaluating the product. It most possibly will have a favorable effect on Corning’s fourth-quarter performance.
In the to-be-reported quarter, Corning announced a partnership with Nokia and Wesco International to accelerate and expand Internet in rural areas. A new fiber-to-the-home kit with award-winning FlexNAP components from Corning was introduced for the first time by Wesco. FlexNap is a cabling solution developed by Corning that reduces cost by up to 30% and allows operators complete projects five times faster. Corning's strategic alliance with Nokia and Wesco will help close the digital divide in underserved areas. Acceptance of FlexNap components will likely boost the optical communication portfolio and it is likely to have had a positive impact on the fourth-quarter performance.
However, adverse macroeconomic environment is likely to hinder fourth quarter revenues. The display and optical segments account for more than 60% of overall revenues, limiting end market diversification. This further shrinks the market because the Display Technologies and Specialty Materials divisions depend heavily on consumer spending, especially on LCD TVs and mobile PCs, which are likely to be weighed down by high inflationary pressures and uncertain macroeconomic environment. Moreover, smartphone shipments in 2022 are likely to have experienced its biggest year-over-year loss in a decade, falling 17% in the fourth quarter alone. The difficulties in the supply chain and the effects of inflation are also likely to have affected the quarterly revenues.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3,522 million. It reported revenues in the year-ago quarter were $3,714 million. The consensus estimate for adjusted earnings per share stands at 44 cents, which suggests a decline from the year-ago tally of 54 cents.
Earnings Whispers
Our proven model does not predict an earnings beat for Corning for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.0%, with both standing at $0.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +6.88% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
The Earnings ESP for Telephone and Data Systems, Inc. (TDS - Free Report) is +2.63% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 16.
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Will Corning's (GLW) Top-Line Contraction Impact Q4 Earnings?
Corning Incorporated (GLW - Free Report) is scheduled to report fourth-quarter 2022 results before the opening bell on Jan 31. In the last reported quarter, the communications components provider matched the Zacks Consensus Estimate of 51 cents. Corning delivered a trailing four-quarter earnings surprise of 4.4%, on average. The company is expected to have recorded lower revenue year over year due to the challenging macroeconomic environment.
Factors at Play
During the fourth quarter, Corning continued its innovation and rolled out Corning Gorilla Glass Victus 2, a new glass composition that improves its ability to withstand drops on tough surfaces like concrete. With its ongoing innovation, Corning is expected to meet these requirements and guarantee endurance. More than 8 billion devices currently have Gorilla Glass installed, making it the top choice of the major smartphone manufacturers. The addition of Gorilla Glass Victus 2 will further strengthen its Gorilla Glass portfolio. Several smartphone manufacturers are already evaluating the product. It most possibly will have a favorable effect on Corning’s fourth-quarter performance.
In the to-be-reported quarter, Corning announced a partnership with Nokia and Wesco International to accelerate and expand Internet in rural areas. A new fiber-to-the-home kit with award-winning FlexNAP components from Corning was introduced for the first time by Wesco. FlexNap is a cabling solution developed by Corning that reduces cost by up to 30% and allows operators complete projects five times faster. Corning's strategic alliance with Nokia and Wesco will help close the digital divide in underserved areas. Acceptance of FlexNap components will likely boost the optical communication portfolio and it is likely to have had a positive impact on the fourth-quarter performance.
However, adverse macroeconomic environment is likely to hinder fourth quarter revenues. The display and optical segments account for more than 60% of overall revenues, limiting end market diversification. This further shrinks the market because the Display Technologies and Specialty Materials divisions depend heavily on consumer spending, especially on LCD TVs and mobile PCs, which are likely to be weighed down by high inflationary pressures and uncertain macroeconomic environment. Moreover, smartphone shipments in 2022 are likely to have experienced its biggest year-over-year loss in a decade, falling 17% in the fourth quarter alone. The difficulties in the supply chain and the effects of inflation are also likely to have affected the quarterly revenues.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3,522 million. It reported revenues in the year-ago quarter were $3,714 million. The consensus estimate for adjusted earnings per share stands at 44 cents, which suggests a decline from the year-ago tally of 54 cents.
Earnings Whispers
Our proven model does not predict an earnings beat for Corning for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.0%, with both standing at $0.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Corning Incorporated Price and EPS Surprise
Corning Incorporated price-eps-surprise | Corning Incorporated Quote
Zacks Rank: Corning has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Juniper Networks, Inc. (JNPR - Free Report) is set to release quarterly numbers on Jan 31. It has an Earnings ESP of +1.89% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +6.88% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 1.
The Earnings ESP for Telephone and Data Systems, Inc. (TDS - Free Report) is +2.63% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.