Corning (GLW) To Report Q1 Earnings: What's In The Cards?

Corning Inc (NYSE:GLW) is set to release first-quarter 2018 results on Apr24. The company beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 6.39%.

In fourth-quarter 2017, earnings of 49 cents per share outpaced the Zacks Consensus Estimate by a couple of cents. Core revenues increased 7% year over year to $2.74 billion, which surpassed the Zacks Consensus Estimate of $2.63 billion.

For the first quarter 2018, the Zacks Consensus Estimate for earnings per share and revenues are projected to be 30 cents and $2.51 billion, respectively.

We believe strength in the company’s Optical Communications, Environmental Technologies and Specialty Materials business lines to drive top-line growth.

Let’s see, how things are shaping up for this announcement.

Factors to Consider

Corning’s results are likely to benefit from its optical communications segment, primarily owing to strong demand for fiber products. The company’s initiative to strengthen the segment is evident from the announced acquisition of 3M’s communication (NYSE:MMM) market division which will not only expand worldwide market access but also enhance its product portfolio.

Management remains positive about TV screen size growth and ramping production of BOEs Gen 10.5 in Hefei.

Moreover, robust adoption of Gorilla Glass 5 bodes well for its specialty materialssegment. The trending glass backs on devices and smart watches leveraging Gorilla Glass for its cover material is a tailwind.

Additionally, the company’s focus on expanding its footprint in the automotive market driven by gas particulate filters (“GPFs”) and a Gorilla-sized automotive glass business is a positive.

Furthermore, Corning collaborated with AU Optronics Corporation (“AUO”) to launch a solar panel project in Taiwan to provide sufficient electricity to address the power needs of roughly 300 U.S. households a year. The rooftop solar power equipment installed at Corning’s two manufacturing facilities will help the company reduce its carbon dioxide emissions by more than 2,375 metric tons per year.

However, weakness in the Display segment remains a headwind. Management anticipates LCD glass market to grow low-single digits on account of seasonality.

What Does Our Model Say

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Notably, sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Corning has a Zacks Rank #3 and an Earnings ESP of 0.00%, which indicates an unlikely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

A couple of stocks from the broader technology sector, you may want to consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarterare:

Western Digital (NASDAQ:WDC) has an Earnings ESP of +2.20% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.

Paycom (NYSE:PAYC) has an Earnings ESP of +0.33% and a Zacks Rank #1.

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