Corning shares tick up after earnings beat
The company's LCD display unit reported a hefty 58% increase in core sales.
But why would a penny beat on EPS send shares up so much? On Monday's Stock of the Day, Motley Fool analyst Jamal Carnette explains that analysts are keeping a keen eye one Corning's Display Technologies segment, which makes LCD displays for TV's.
That segment reported a hefty 58 percent increase in core sales year over year, which is likely the reason behind the jump in share price.
That said, some of that impressive result was due to the joint LCD venture with Samsung last year, but on the other hand Corning's management team has done an admirable job of providing the earnings accretion and cost synergies they promised.
So should investors get in on the action? Jamal says to hold off right now -- he's keeping a close eye on Corning's Specialty Materials segment, which is where its famous Gorilla Glass comes from. Gorilla Glass, one of Corning's most popular products, will be seeing a lot more competition soon from GT Advanced Technologies and Universal Display. On top of all that, Corning's near multi-year highs right now, which is enough for Jamal to stay on the sidelines.
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