The long and short of Corning
Quarter shows exactly how good Corning's future could be
That's exactly what investors got in the market reaction to Corning's third-quarter earnings announced on Monday.
The company reported earnings of 42 cents a share, beating Wall Street projections by three cents a share. Revenues were down 4.9% from the third quarter of 2008, but at $1.48 billion still came in $60 million above analyst expectations.
Dig a little deeper, and the quarter showed exactly how good Corning's future could be. Sales from units that represent products that are just gaining market traction now soared from second- quarter levels.
Environmental technologies, the home of Corning's diesel filter products, showed a 27% increase in sales from the second quarter. Specialty materials, the home of Corning's gorilla glass for touch-screen displays, increased sales by the same 27% from the second quarter.
But, as always, analysts and investors had just enough to worry about in the results from the company's current bread-and-butter business of glass for LCD television and computer displays.
Corning said it expects volume in its wholly owned display business to be flat or down slightly in the fourth quarter from third-quarter levels. Prices, the company said, would be consistent with those in the third quarter.
Investors with long memories could breathe a sigh of relief: They remember the fear, not so long ago, that prices would plunge in the fourth quarter.
Investors with more of a “what have you done for me lately?” approach were disappointed that the company didn't raise guidance or otherwise signal optimism for the fourth quarter and 2010.
As of October 28th, I'm keeping my current target price of $19 a share for June 2010. (It traded below $15 Wednesday.)
At the time of this writing, Jim Jubak owned shares of Corning in his personal portfolio.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Like many companies this winter, the fast-food giant blamed a drop in same-store sales on the weather. But could its problems be bigger than a snowbank?
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.