Seeking Alpha
, Small Cap Gems (626 clicks)
Long only, contrarian, special situations, value
Profile| Send Message|
( followers)  

Corning (NYSE:GLW) came through today with an earnings report that should delight its shareholders. Gorilla Glass continues to gain traction for mobile displays. These shares are still cheap and should appeal to value, growth and dividend investors.

Positives from today's earnings report:

  • Net earnings came in at 34 cents a share, two pennies above estimates.
  • Revenue beat estimates by some $80mm.
  • Overall revenue grew 14% Y/Y to $2.15B.
  • Telecommunications segment sales were $540 million, a 10% year-over-year increase.
  • Gorilla Glass continues to power earnings. The company's specialty materials division saw sales growth of almost 70% Y/Y to just under $400mm.

Corning produces specialty glasses, ceramics, and related materials worldwide. The company operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences.

4 additional reasons GLW still has upside from just over $12 a share:

  1. The stock yields 2.9% and the company raised its dividend payout over the summer.
  2. The company has a very solid balance sheet. Corning has almost $3B in net cash on its books (Approximately 15% of current market capitalization).
  3. Revenue growth should accelerate to 5% to 6% in FY2013 after being basically flat in FY2012. The stock sports a five year projected PEG of under 1 (.79).
  4. The stock is cheap at less than 9.5x forward earnings (Around 8x subtracting net cash).
Source: Gorilla Glass Continues To Power Corning