NEW YORK (TheStreet) -- Corning (GLW) shares closed Monday's trading session down 1.59% to $17.32 ahead of the company's third quarter fiscal 2015 earnings results due out on Tuesday before the market opens.
Both earnings and revenue are estimated to fall year-over-year.
For the latest quarter, analysts are expecting the company to earn 35 cents a share on revenue of $2.52 billion.
In the same period the previous year, the company earned 40 cents a share on revenue of $2.65 billion.
One major headwind is currency, however, optical communications sales are projected to increase year-over-year, according to Zacks Equity Research.
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 several positive factors, 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. 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 193.5% when compared to the same quarter one year prior, rising from $169.00 million to $496.00 million.
- GLW's debt-to-equity ratio is very low at 0.19 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 3.47, which clearly demonstrates the ability to cover short-term cash needs.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, CORNING INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CORNING INC is rather high; currently it is at 53.69%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.16% significantly outperformed against the industry average.
- CORNING INC reported significant earnings per share improvement 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 17.9% in earnings ($1.42 versus $1.73).
- You can view the full analysis from the report here: GLW