NEW YORK (TheStreet) -- Corning (GLW) - Get Report current quarter earnings estimates was cut to $0.37 from $0.40 per share at Jefferies, with 2015 earnings estimates lowered to $1.45 from $1.50 per share.
The firm maintained its "hold" rating and $21 price target on the stock.
Corning announced its 2015 second quarter financial results yesterday with earnings of $0.38 on revenue of $2.52 billion. This compares to $0.34 earnings per share on revenue of $2.51 billion for the same period one year ago.
"We still think the display business is quite mature - the tradeoffs between TV/PC unit volumes, screen size expansion, and LCD glass price declines make this a moderately declining business over time," Jefferies analysts said.
Corning, based in Corning, NY, creates and makes keystone components that enable systems for consumer electronics, mobile emissions control, optical communications and life sciences.
Shares of Corning are rising 0.98% to $18.55 in afternoon trading Wednesday.
Separately, TheStreet Ratings team rates CORNING INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNING INC (GLW) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 35.2% when compared to the same quarter one year prior, rising from $301.00 million to $407.00 million.
- GLW's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.46, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for CORNING INC is rather high; currently it is at 53.33%. Regardless of GLW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLW's net profit margin of 17.96% significantly outperformed against the industry.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 1.9%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- CORNING INC has improved earnings per share by 45.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CORNING INC increased its bottom line by earning $1.73 versus $1.34 in the prior year. For the next year, the market is expecting a contraction of 13.9% in earnings ($1.49 versus $1.73).
- You can view the full analysis from the report here: GLW Ratings Report