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Will Higher Revenues Drive Corning's (GLW) Q3 Earnings?

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Corning Incorporated GLW is scheduled to report third-quarter 2021 results on Oct 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 3.9%.

It is expected to have recorded year-over-year higher aggregate revenues on the back of positive momentum across all five business segments.

Factors at Play

During the quarter, Corning announced a new category for its scratch-resistant and durable glass composite products — Gorilla Glass with DX and Gorilla Glass with DX+. The technology in mobile device cameras enables professional-grade image capture through a combination of advanced optical performance, superior scratch resistance, and durability.

Corning announced a new product category for its Automotive Glass Solutions. The Curved Mirror Solutions have been integrated into an Augmented Reality Head-Up Display system by Hyundai Mobis. Compared with traditional technologies, Corning mirrors enable a larger display area across the windshield with a projection distance that is five times greater. Corning’s high-quality, distortion-free solutions are helping automakers to create the most immersive and connected driving experiences.

The company introduced new high-performance cellular solutions to help network operators bring reliable 5G connection indoors with small-cell radio nodes that are easy to install and cost-effective. The in-building cellular products are part of Corning’s Everon Network Solutions — a suite of optical network components for enterprise deployment.

Corning expanded its collaboration with AT&T by working together to extend investments in fiber infrastructure, expand U.S. broadband networks, and accelerate 5G deployment. Corning announced an investment of $150 million in optical cable manufacturing in North Carolina, extending its market leadership as demand for network infrastructure continues to grow. These developments are likely to have had a positive impact on Corning’s performance.

The Zacks Consensus Estimate for the Optical Communications segment’s net sales is pegged at $1,110 million. The figure indicates a rise of 22.1% from the year-ago quarter’s reported figure. The higher projection reflects sales growth in both enterprise and carrier networks, driven by 5G, fiber-to-the-home, and cloud computing projects.

The consensus estimate for Display Technologies sales is $944 million, which indicates a rise of 14.1% year over year. The performance is likely to have been driven by an increase in glass substrate prices.

The consensus estimate for Specialty Materials sales is $575 million, which indicates growth of 0.9% year over year. The performance is likely to have been driven by demand for premium cover materials, strength in the IT market, and greater optical content in semiconductor manufacturing.

The consensus estimate for Environmental Technologies sales is pegged at $410 million, which suggests growth of 8.2%. This reflects improving markets and more Corning content. Under this, automotive sales benefited from the adoption of gasoline particulate filters in Europe and China. Diesel sales benefited from the adoption of advanced exhaust after-treatment systems and strength in the North America heavy-duty truck market.

The consensus estimate for Life Sciences sales stands at $309 million, which implies an increase from $223 million reported a year ago. This reflects a recovery in academic and pharmaceutical research labs and strong demand for bioproduction products and diagnostic-related consumables.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $3,665 million, which indicates growth of 21.9% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 58 cents, which suggests an increase of 34.9%.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Corning this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Corning’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.58%.

Corning Incorporated Price and EPS Surprise

Corning Incorporated Price and EPS Surprise
Corning Incorporated Price and EPS Surprise

Corning Incorporated price-eps-surprise | Corning Incorporated Quote

Zacks Rank: Corning currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Perion Network Ltd. PERI is slated to release third-quarter 2021 results on Oct 26. It has an Earnings ESP of +8.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boyd Gaming Corporation BYD is scheduled to release third-quarter 2021 results on Oct 26. The company has an Earnings ESP of +2.17% and a Zacks Rank #2.

Acadia Realty Trust AKR has an Earnings ESP of +1.50% and a Zacks Rank #2. The company is set to report third-quarter 2021 results on Oct 26.


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