Better forecast less, than more and not meet expectations…
Corning shares were down 30 cents, or 1.64 percent, at $17.95 on the New York Stock Exchange in late afternoon trading. Specialty glass maker Corning Inc (GLW.N) expects sales and earnings to rise this year, driven by strong global demand for TVs and mobile phones, but concerns that the company's outlook was too conservative sent the stock lower on Friday. Corning forecast an increase of 14 percent to 22 percent in total LCD glass demand in 2010, driven by global consumer demand for LCD televisions and personal computers In a note to clients, UBS analyst Nikos Theodosopoulos called Corning's forecast "realistic but conservative." He had pegged 2010 growth at about 21 percent.
PS Nikos Theodosopoulos is rated as one of the most accurate analyst Also I would do same thing as Corning e.g. better forecast less, than more and not meet expectations I keep buying....
not that there has been negative news, but the news that is out is not really all that positive - a few new products, which won't have much of an impact in 2010, investment in China which carries high risk, and a so-so LCD TV forecast - none of those will move the stock
Just a thought, with all the new TVs and mobile phones, it just seems to me that they are putting the cart before the horse. With all the growth in these products and their services, they will need to have fiber. This will be GLW's engine for growth and will allow them to beat the street in the 2nd half of 2010.
also ....the UBS analyst thinks the stock’s dip is a buying opportunity, and repeats his Buy rating.
Ticonderoga Securities analyst Brian White thinks the stock’s drop reflects an over-reaction to the company’s comment that LCD glass volume will likely be sequentially lower in Q2; he says Corning noted late in the meeting that its own glass production may ont follow industry trends and could grow in the quarter. He keeps his Buy rating.
CLSA Asia Pacific Markets analyst Steve Fox pins the decline on concerns over the 2010 LCD volume forecast, as well as the Q2 sequential volume drop noted above. He also sees a buying opportunity.