On Wednesday, the European Union opened an investigation of U.S. manufacturer Corning over possible anti-competitive practices. Corning may not be a name that's super familiar to the average tech consumer, but you are almost certainly within touching distance of its products as its a leading supplier of speciality toughened glass for mobile devices, including Apple's iPhone.
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Investors looking for stocks in the Communication - Components sector might want to consider either Corning (GLW) or Arista Networks (ANET). But which of these two stocks is more attractive to value investors?
Corning Incorporated's price has rallied over the past year, since my last bullish take on the stock. GLW recently reported robust Q3 results, and is seeing strong momentum around AI and data center-fueled demand from leading telcos. Corning is also supported by a respectable dividend yield, a strong balance sheet, and it fits the profile of growth at a reasonable price.
Corning reported strong Q3 results, beating on top and bottom lines. 8% revenue growth, 20% income expansion in Q3 and a projected sales growth of 15% and income increase of 40% in Q4 mean Corning enters a period of substantial growth. GLW remains a solid long-term investment.
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Corning's strong Q3 performance and bullish outlook suggest GLW stock may trade higher, attracting long-term investors. Corning's Optical Communications unit benefits from new optical-connectivity products for generative AI, with potential growth from agreements with AT&T and Lumen Technologies. Corning expects operating margins to top 20% by 2026, driven by strong gross margins, cash flow, and technical capabilities.
Corning's recently published third-quarter results arrived with plenty for investors to be excited about.
GLW reports top-line growth year over year in the third quarter, owing to solid demand in the Enterprise end market.
Corning Incorporated (NYSE:GLW ) Q3 2024 Earnings Conference Call October 29, 2024 8:30 AM ET Company Participants Ann Nicholson - Vice President, Investor Relations Wendell Weeks - Chairman and Chief Executive Officer Edward Schlesinger - Executive Vice President and Chief Financial Officer Conference Call Participants Samik Chatterjee - JPMorgan Matthew Niknam - Deutsche Bank Steven Fox - Fox Advisors LLC Wamsi Mohan - Bank of America John Roberts - Mizuho Asiya Merchant - Citi Meta Marshall - Morgan Stanley Martin Yang - Oppenheimer James Cannon - UBS George Notter - Jefferies LLC Tim Long - Barclays Operator Good day and thank you for standing by. Welcome to the Corning Incorporated Quarter Three 2024 Earnings Conference Call.
Although the revenue and EPS for Corning (GLW) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Corning (GLW) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.45 per share a year ago.