Corning Inc. (GLW): Zacks Rank Buy

• By Alex Kolb
• On 1:00 am EDT, Monday September 28, 2009

Corning Inc. (NYSE: GLW - News) recently announced its acquisition of Axygen BioScience from American Capital Ltd. (ACAS) for approximately $400 million in cash. Axygen makes plastic consumable labware, liquid handling products and bench-top laboratory equipment.

Axygen's product portfolio and established distribution network will significantly strengthen Corning's life sciences platform and are critical components to our long-term growth strategy for this business, said Peter F. Volanakis, Corning's president and chief operating officer. We believe this highly strategic acquisition offers synergies that will allow us to grow our life sciences business to more than $500 million in revenue by 2011, he added.

Improved Outlook

Corning also recently updated its outlook, announcing that it expects sales volume at its wholly owned business to be down by less than 5% in the third quarter, compared to the quarter-prior. The forecast is an improvement from the previous projection of a decline of 5% to 10% decline.

The company previously stated that production would be adversely impacted by an earthquake at a factory in Shizuoka, Japan, southwest of Tokyo, adding that the disruption will cut sales for the quarter by about $25 million and result in $22 million worth of charges because of damages. Management also said the restart of the Shizuoka plant is on track.

Higher Forecasts

The Zacks Consensus Estimates are on the rise. Full-year projections of $1.25 are above last month's $1.18. For 2010, analysts polled by Zacks are calling for earnings of $1.51 per share, versus the 1 month-ago level of $1.48.

Read the Sept 09 commentary on GLW.

Last Week's Growth and Income Zacks Rank Buy Stocks

Ross Stores, Inc. (NasdaqGS: ROST - News) recently reported August sales of $557 million, an increase of 11% year-over-year. Same store sales climbed 6% from last year. Management noted that healthy back-to-school traffic helped deliver the better-than-expected sales gains. Read the full story on ROST.

J & J Snack Foods Corp. (NasdaqGS: JJSF - News) continues to see bullish Zacks Consensus Estimates on strong fundamentals. Analysts are calling for 2009 earnings of $2.13 per share and 2010 earnings of $2.34, which translates into 10% growth. Read the full analysis on JJSF.

NewMarket Corporation (NYSE: NEU - News) continues to see higher Zacks Consensus Estimates as it trades near a 52-week high. Analysts polled by Zacks are calling for 2009 earnings of $8.14 per share, an increase of 30% over the past 2 months. Read the full analysis on NEU.

DeVry Inc. (NYSE: DV - News) announced record results in mid-August. Fourth-quarter earnings per share of 55 cents topped the Zacks Consensus Estimate by 8% and surpassed the year-prior result. Revenues of $396.2 million came in 43% ahead of last year's total. Read the full analysis on DV.

CORNING INC (GLW): Free Stock Analysis Report

Zacks Investment Research

ADVERTISEMENT  Zacks Investment Research FREE: 4 Stock Picks Every Day This system triples the S&P 500. Get Picks Now >>