Glass and electronic component manufacturer Corning (NYSE:GLW) will be reporting earnings this Tuesday before market open. Here’s what to look for.
Corning beat analysts’ revenue expectations by 5.8% last quarter, reporting revenues of $3.68 billion, up 23.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ Optical Communications revenue estimates.
Is Corning a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Corning’s revenue to grow 19% year on year to $3.87 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Corning has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Corning’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bel Fuse delivered year-on-year revenue growth of 26.3%, beating analysts’ expectations by 10.1%, and Vicor reported revenues up 11.9%, in line with consensus estimates. Bel Fuse traded up 18.8% following the results while Vicor was also up 17%.
Read our full analysis of Bel Fuse’s results here and Vicor’s results here.
There has been positive sentiment among investors in the electrical equipment segment, with share prices up 6.8% on average over the last month. Corning is up 5.3% during the same time and is heading into earnings with an average analyst price target of $56.25 (compared to the current share price of $55.40).
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