) is set to report first quarter 2013 results on Apr 24. Last
quarter, it posted a 3.03% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors this Past Quarter
Corning's sales growth rate in the first quarter of 2013 was
higher than the fourth quarter as well as the year-ago period
driven by improvement in all the revenue segments, except the
Environmental Technologies segment, which was impacted by
weakness in light duty diesel products. However, margin expansion
was limited by the significant decline in LCD glass prices.
Glass price declines are expected to moderate whereas glass
volumes are expected to increase going forward, which indicates
improvement in Corning's largest and most important Display
Technologies segment. Additionally, the company saw significantly
higher demand for Gorilla Glass in the last quarter, which is
quite encouraging and should help absorb costs at the new Chinese
Our proven model does not conclusively show that Corning will
beat earnings this quarter. That is because a stock needs to have
both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. That is not
the case here as you will see below.
The Most Accurate estimate stands at 23 cents while the Zacks
Consensus Estimate is higher at 26 cents. That is a difference of
Zacks Rank #3 (Hold):
Corning's Zacks Rank #3 (Hold) when combined with a negative ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
Applied Materials, Inc.
), Earnings ESP of +7.69% and Zacks Rank #2 (Buy)
Intersil Corp. (
, Earnings ESP of +62.5% and a Zacks Rank #3 (Hold)
), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)
APPLD MATLS INC (AMAT): Free Stock Analysis
AMAZON.COM INC (AMZN): Free Stock Analysis
CORNING INC (GLW): Free Stock Analysis Report
INTERSIL CORP (ISIL): Free Stock Analysis
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