Corning Incorporated (GLW) Stock Climbs On Solid Earnings


Corning Incorporated (NYSE: GLW)

Corning had a rough day in the market yesterday and investors didn’t seem to expect much leading up to the company’s fiscal Q4 earnings report. However, the company reported earnings early this morning, beating expectations and causing cheer among investors. Today, we’ll take a look at what we saw from earnings, how the market reacted to the news, and what we can expect to see from GLW moving forward. So, let’s get right to it.

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GLW Beats Earnings Expectations For Q4

As mentioned above, GLW released its earnings report for the fiscal fourth quarter in the early morning hours today. While investors expected to see the report, based on the movement we saw from the stock yesterday, no one seemed to be expecting it to be so positive. Here’s what we saw from the Corning earnings report:

  • Earnings Per Share – In the quarter, analysts expected to see GLW produce earnings per share in the amount of $0.32. However, the company actually produced earnings in the amount of $0.34 per share.
  • Top-Line Revenue – Revenue also came in well ahead of expectations. While analysts expected Corning to produce revenue in the amount of $2.33 billion, the company actually reported revenue in the amount of $2.4 billion.

How The Market Reacted To The News

As investors, history has told us that when a company produces positive earnings results, we can expect to see gains in the value of the stock. That’s exactly what we’re seeing from GLW today as investors cheer the positive earnings report the company released. Currently (11:08), the stock is trading at $17.66 per share after a gain of $0.90 per share or 5.37% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly positive opinion with regard to what we can expect to see from GLW. Over the past 2 years, the company has beat earnings expectations 6 times, only missing expectations twice over the span. Ultimately, investors are looking for growth, and Corning has proven its ability to do just that. Also, GLW announced that it expects first quarter sales to increase into the low- to mid-single digit range with regard to its optical communications systems. This will drive strong revenue for the company, likely leading to investor excitement and further gains. The company is also expecting to see growth in its life-sciences arm as well.

Aside from what the company is expecting to see in the first quarter, it’s also important to look at factors like investor sentiment. Clearly, following such a strong earnings report, investors are excited about GLW. Since investors are the ultimate deciding factor with regard to price movements in the market, we can expect the incredible investor excitement to lead to further gains for GLW. All in all, things seem to be headed in the right direction for the company.

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What Do You Think?

Where do you think GLW is headed moving forward and why? Let us know your opinion in the comments below!

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