Yahoo Finance Corning (GLW) Moves 12.0% Higher: Will This Strength Last?
Corning (GLW) shares ended the last trading session 12% higher at $43.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.1% gain over the past four weeks.
The uptrend in share prices can be primarily attributable to the bullish preliminary results for the second quarter of 2024. Management currently expects second-quarter revenues to be about $3.6 billion, exceeding its earlier guidance of $3.4 billion. The improved revenue expectations are largely due to the solid adoption of the new optical connectivity products for Generative AI.
The bottom line is likely to be at the high end of its earlier guidance range of 42-46 cents or even exceed it on healthy secular trends. Over the next three years, Corning expects annual sales to grow by more than $3 billion on solid demand, delivering incremental profit and cash flow.
This specialty glass maker is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $3.41 billion, down 2.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Corning, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GLW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Corning is a member of the Zacks Communication - Components industry. One other stock in the same industry, Viav Solutions (VIAV), finished the last trading session 2.3% higher at $7.22. VIAV has returned -4.6% over the past month.
For Viav Solutions , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. This represents a change of -30% from what the company reported a year ago. Viav Solutions currently has a Zacks Rank of #4 (Sell).
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