The company now expects to see single digit volume growth in demand after initially expecting to see flat to negative quarter to quarter volume. Part of the rise in demand is tied to Samsung's (SSNLF) agreement to use the company's Gorilla Glass 4 in its next generation Galaxy Alpha smartphone.
Analysts at Cantor Fitzgerald believe that if the company reaches its increased guidance it will add $65 million in revenue to the firm's $1.075 billion revenue forecast for the fourth quarter. The company announced its partnership with Samsung ahead of its presentation at Barclay's Global Technology Conference which began today in San Francisco and ends Thursday.
Separately, the company's board declared a 12 cent per share quarterly dividend, a 20% increase from its previous dividend, while also authorizing a $1.5 billion share buyback program. The yield is payable March 31 to shareholders of record on February 27.
TheStreet Ratings team rates CORNING INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNING INC (GLW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 22.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GLW's debt-to-equity ratio is very low at 0.17 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 3.60, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 157.14% and other important driving factors, this stock has surged by 26.51% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GLW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 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. We feel that this trend should continue. During the past fiscal year, CORNING INC increased its bottom line by earning $1.34 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $1.34).
- 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 148.5% when compared to the same quarter one year prior, rising from $408.00 million to $1,014.00 million.
- You can view the full analysis from the report here: GLW Ratings Report