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Corning

(GLW) - Get Corning Inc Report

fans hope to see some growth back on display at the glassworks.

The Corning, N.Y., computer screen and TV glassmaker is set to post third-quarter earnings after the market closes Tuesday. And some observers are feeling optimistic about the return of big-TV buyers.

Investors will recall that the second quarter was a

big bust as an oversupply of liquid crystal display glass was met with a slump in demand. After reporting disappointing second quarter numbers, Corning cut its full year liquid crystal display volume estimates. That sent Corning shares -- known in some quarters as Glo-worm after the company's GLW ticker symbol -- tumbling 18% over two weeks.

But some health has returned to the industry, and Corning shares have recovered to their predisappointment levels.

"We believe glass demand could be greater than anticipated as the panel inventory situation appears to be healthy and attractive retail pricing sparks end market demand for the holidays," CIBC analyst Jeff Osborne wrote in a research note.

The analysis is supported by record third-quarter revenue levels at outfits like

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AU Optronics

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, a big Corning customer. Sales at the Taiwan panel shop increased 20% over second-quarter levels, driven by strong demand for large TV screens.

Last month, Corning revised its third-quarter guidance largely by narrowing the ranges on prior estimates. The company predicts it had a third-quarter adjusted profit of 25 cents on sales of about $1.29 billion.

Analysts polled by Reuters Research expect pro forma earnings of 25 cents on $1.3 billion in sales.

The company said gross margins should be around 42% or 43%, a slight adjustment from the 41% to 43% range previously given.

And on a sequential basis, LCD volume growth should jump 10% to 15%, which is an improvement from the 5%-to-15% range initially pegged for the quarter.

For the year, Corning sees LCD volume growth somewhere between 40% and 50%. Bulls expect the company to raise that target above 50%.

Corning shares rose 8 cents Monday to close at $23.34.