Corning Incorporated (NYSE:GLW) GLW joined forces with EnerSys (NYSE:ENS) ENS to accelerate 5G deployment by streamlining the delivery of fiber and electrical power to small-cell wireless sites. Headquartered in Reading, PA, EnerSys is a global leader in stored energy solutions for industrial applications.
Corning’s shares inched up 2.6% in yesterday’s trading, closing at $28.06.
Corning anticipates 5G to be a major driver of long-term growth in its Optical Communications business. The latest move will leverage Corning’s fiber, cable and connectivity know-how together with EnerSys’ technology leadership in remote powering solutions. The companies are working to solve infrastructure challenges in the deployment of 5G and small cells in outside plant networks.
The deployment of 5G small cells is exerting pressure on utilities to provide power at every location. The collaboration will likely accelerate the development of solutions to deliver distributed powering and optical connectivity. This, in turn, will help telecommunications service providers to eventually move toward planned deployment of 5G. The companies intend to simplify deployment by bringing together the delivery of optical connectivity and power distribution.
Since the third quarter of 2019, Corning has been struggling with both the Optical Communications and Display Technologies segments. In Optical Communications, the company is beleaguered by overall market weakness stemming from its customers’ project spending decisions, primarily in carrier networks.
While in Display Technologies, lower glass volume and prices are hurting the company’s growth profile. Nevertheless, Corning operates on a strong financial foundation, which positions it well for long-term growth while adjusting to near-term conditions.
In April 2020, Corning reorganized its operating structure after extensive analysis and leadership review. Designed to unlock opportunities for valuable synergies, the revamped structure aligns executive management and business teams around five Market-Access Platforms. These are Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display.
Corning’s shares have rallied 37.6% in the past three months compared with 10.2% growth of the industry. The company has a trailing four-quarter positive earnings surprise of 8.6%, on average.
Corning currently has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader industry are Turtle Beach (NASDAQ:HEAR) Corporation HEAR and T-Mobile US (NASDAQ:TMUS), Inc. TMUS, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.
T-Mobile has a trailing four-quarter positive earnings surprise of 19.4%, on average.
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