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Corning Q4 2010 earnings preview

Technology-based corporation Corning Incorporated (Corning) will report Q4-2010 results on Monday, 24 January 2011. In three out of last four quarters ending September 2010, the company“s reported EP…

Technology-based corporation Corning Incorporated (Corning) will report Q4-2010 results on Monday, 24 January 2011. In three out of last four quarters ending September 2010, the company“s reported EPS exceeded analysts“ consensus estimates by margins in the range of 4.76% and 23.81%. In the September 2010 quarter, however, the company“s reported EPS fell short of analysts“ consensus estimates by 1.92%. The company announced third quarter sales of USD 1,602 million, a drop of 6% from the second quarter of 2010 and up 8% from the third quarter of 2009, while earnings per share were USD 0.50. Excluding special items, earnings were USD 0.51, a 12% sequential decline, but 21% increase year over year. With regards to the corporation“s business sectors: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences and subsidiaries, Display Technologies“ combined glass volume, which includes its wholly owned business and Samsung Corning Precision Materials Co., Ltd., decreased 8% sequentially – in line with the worldwide glass market – but increased 7% year over year. Specialty Materials sales were up 26% sequentially and 77% year over year thanks to strong sales in Corning Gorilla Glass and advanced optics. Gross margin was 45%, lower than second-quarter gross margin of 48%, but an increase of 4% from the same period of the previous year. EPS estimates from analysts for the fourth quarter of 2010 range from a low of USD 0.44 to a high of USD 0.52, compared to a consensus estimate of USD 0.47 or year ago EPS of USD 0.44. Estimates for the fourth quarter 2010 revenue range from a low of USD 1.48 billion to a high of USD 1.67 billion compared with a consensus estimate at USD 1.59 billion or reported revenue of USD 1.53 billion in the same quarter a year ago. In December 2010, the company said fourth-quarter volumes of LCD glass would probably be consistent with the third quarter, better than forecasted, and that supply chain inventories had begun to improve. Environmental segment fourth-quarter sales were also tracking ahead of GLW expectations. Corning manufactures and processes products at approximately 60 plants in 13 countries. Its subsidiaries include Corning Cable Systems LLC, Corning Cable Systems Polska Sp. Z o.o, Axygen BioScience, Inc and Corsam Technologies LLC. In September 2009, Corning acquired Axygen BioScience, Inc. In October 2010, the company acquired Plaslab S.A.S.

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