Ticonderoga Maintains a 'Sell' on Corning (GLW); Quick Take on 1Q11 Results
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Price: $165.99 --0%
Rating Summary:
16 Buy, 12 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
Rating Summary:
16 Buy, 12 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
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Ticonderoga maintains a 'Sell' on Corning (NYSE: GLW), prior PT $15.
Ticonderoga analyst says, "1Q11 Slightly Exceed our Estimates But 2Q11 Outlook is Weak. This morning, Corning reported 1Q11 sales of $1.92 billion versus our estimate of $1.86 billion, while pro forma EPS of $0.47 was higher than our $0.45 estimate (the Street was at $0.44) due in part to a lower tax rate (added ~$0.01), lower operating expenses and slightly higher sales. Gross margin increased to 45.4% from 43.5% in 4Q10, marginally above our estimate of 45.0%, while operating margin of 24.2% from 18.0% was above 21.7% projection. Equity earnings totaled $398 million and were below our approximately $420 million projection due in part to weaker than expected demand at Samsung Corning Precision. Inventories surged 14% sequentially in 1Q11, following a 4% increase in 4Q10."
"Outlook for 2Q11 Appears Soft Versus our Estimate. Overall, Corning's 2Q11 sales outlook (based on growth by business segment) appears light versus our $2.06 billion projection due largely to weakness in the Display Segment, while our pro forma EPS estimate of $0.53 appears aggressive. Telecommunications' sales are expected to rise by 20% Q/Q and better than our up 10% estimate, while Environmental Technologies is expected to decline slightly versus our up 5% projection, while Specialty Materials is anticipated to increase by 20% versus our estimate of up 22%. Finally, equity income is expected to rise by 10% Q/Q versus our estimate of up 20% based on the already reported 1Q11 results. Our estimates and price target are currently under review."
For more ratings news on Corning click here and for the rating history of Corning click here.
Shares of Corning closed at $20.60 yesterday.
Ticonderoga analyst says, "1Q11 Slightly Exceed our Estimates But 2Q11 Outlook is Weak. This morning, Corning reported 1Q11 sales of $1.92 billion versus our estimate of $1.86 billion, while pro forma EPS of $0.47 was higher than our $0.45 estimate (the Street was at $0.44) due in part to a lower tax rate (added ~$0.01), lower operating expenses and slightly higher sales. Gross margin increased to 45.4% from 43.5% in 4Q10, marginally above our estimate of 45.0%, while operating margin of 24.2% from 18.0% was above 21.7% projection. Equity earnings totaled $398 million and were below our approximately $420 million projection due in part to weaker than expected demand at Samsung Corning Precision. Inventories surged 14% sequentially in 1Q11, following a 4% increase in 4Q10."
"Outlook for 2Q11 Appears Soft Versus our Estimate. Overall, Corning's 2Q11 sales outlook (based on growth by business segment) appears light versus our $2.06 billion projection due largely to weakness in the Display Segment, while our pro forma EPS estimate of $0.53 appears aggressive. Telecommunications' sales are expected to rise by 20% Q/Q and better than our up 10% estimate, while Environmental Technologies is expected to decline slightly versus our up 5% projection, while Specialty Materials is anticipated to increase by 20% versus our estimate of up 22%. Finally, equity income is expected to rise by 10% Q/Q versus our estimate of up 20% based on the already reported 1Q11 results. Our estimates and price target are currently under review."
For more ratings news on Corning click here and for the rating history of Corning click here.
Shares of Corning closed at $20.60 yesterday.
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