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Corning Second Quarter Earnings
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GLW
Corning (NYSE:GLW) announced its results for the second quarter on July 25, 2012. Corning provides glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Corning fell short of estimates with 30 cents per share and revenues of $1.91 billion. Analysts were expecting 32 cents per share and revenues of $2.02 billion. Revenue fell 4.8% from the same period last year while EPS is down 36.2%. Revenue declined last quarter after shrinking 0.2% to $1.92 billion in the first quarter. Corning's net income for the second quarter was $462 million. According to the reported number, this is down 38.8% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 38.2% in the first quarter and 53% in the fourth quarter of the last fiscal year.
Management Quote: Reflecting on Corning's second-quarter performance, Wendell P. Weeks, chairman, chief executive officer, and president, said, "We had a solid second quarter in terms of sales and earnings performance. We achieved much more moderate price declines for our LCD glass as set forth in our goals that we shared in February. Additionally, LCD glass retail and supply chain market statistics were generally in line with our expectations. As a whole, our other businesses grew 2% year-over-year."
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. For the fiscal year, the average estimate has moved up from $1.34 a share to $1.35 over the last 60 days.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Corning fell short of estimates with 30 cents per share and revenues of $1.91 billion. Analysts were expecting 32 cents per share and revenues of $2.02 billion. Revenue fell 4.8% from the same period last year while EPS is down 36.2%. Revenue declined last quarter after shrinking 0.2% to $1.92 billion in the first quarter. Corning's net income for the second quarter was $462 million. According to the reported number, this is down 38.8% from last year's figures. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 38.2% in the first quarter and 53% in the fourth quarter of the last fiscal year.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. For the fiscal year, the average estimate has moved up from $1.34 a share to $1.35 over the last 60 days.
by
Investopedia Staff
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