Cantor Fitzgerald Comments on Weakness in Corning (GLW) Stock

Cantor Fitzgerald maintained a Hold rating on Corning (NYSE: GLW) and reduced its price target to $18.00 (from $19.00). Analyst Brian J. White noted weakness in the tablet market and a delayed smartphone ramp.

"In our view, the big concern on today's call was the weaker-than-expected Gorilla Glass sales in 2Q:14 and the softer-than-expected 3Q:14 outlook. The main driver of this weakness is a meaningful fall off in demand for tablets (~40% of Gorilla sales), a phenomenon that we highlighted during our trip to Taiwan in early June. Additionally, Gorilla Glass sales were impacted by a delay in the smartphone market. Despite weakness in Gorilla Glass, Corning sounded constructive around trends in the Display market. For 3Q:14, Corning expects Display volume to grow by a mid-single-digit percentage QoQ, with price declines in the LCD glass business expected to further moderate," said White.

"For 3Q:14, we are slightly trimming our sales estimate to $2.631 billion from $2.668 billion (Consensus is at $2.671 billion), and are lowering our EPS estimate to $0.37 from $0.40 (Consensus is at $0.41). For 2014, we are lowering our EPS estimate to $1.42 from $1.47, and for 2015, we are cutting our EPS projection to $1.52 from $1.64," he added.

For an analyst ratings summary and ratings history on Corning click here. For more ratings news on Corning click here.

Shares of Corning closed at $22.05 yesterday.

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