Corning Inc. (NYSE: GLW), once a reliable but slow-growth kitchenware company, today represents one of the signature corporate transformation stories of the digital age. Corning is one of the leading providers of fiber-optic cable, which, by the way, the company invented more than 30 years ago. Further, its substrates business did not draw Wall Street's attention until technological advances enabled the price-competitive production of flat panel displays in flat panel televisions, desktop monitors and notebook computers.
Display technology currently accounts for about 43% of revenue, with analysts projecting solid revenue increases in the immediate years ahead. Or, in other words, as Samsung, Sharp and Sony (NYSE: SNE) go, so goes Corning, for the most part. Analysts also see impressive revenue gains for the company's fiber-optic businesses, and its solid balance sheet and good cash flow add to GLW's strong operational characteristics.
The risks: analysts are keeping an eye on Corning's costs, as well as the development of technologies that could complete with fiber for information transmission. The Reuters F2007/F2008 EPS consensus estimates for GLW are $1.40/$1.61.
The First Call mean rating for GLW is Buy (18 firms), and the mean 2007 target is $30.10 (high: $34, low: $26).
Stock Analysis: Corning is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded by GLW's shares. Consider a stop loss order of $14 if you were to purchase shares in this company.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
12-20-2007 @ 1:48PM
Mike Chaszeyka said...
In Corning piece: analysts are waiting for something that could compete with fiber optic information transmission. Analysts, name something faster than the speed of light.