Seeking Alpha
Long only, contrarian, special situations, value
Profile| Send Message| ()  

Corning (GLW) provided something for shareholders to cheer about when it delivered its quarterly earnings report this morning. I think it will prove to be just the tonic to gets its stagnant stock price moving upward again.

Key highlights from Corning's earnings report:

  • EPS came in at 30 cents a share, 6 cents a share above the consensus.
  • It announced it was increasing its dividend payout by slightly more than 10% so that it will now pay 40 cents a share annually.
  • It also stated that a new $2B stock repurchase program will replace an existing $1.5B program, a nice increase in buying power to purchase shares.
  • Margins increased 100bps in the quarter to 43%.

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.

Four additional reasons GLW still has upside from just over $13 a share:

  1. The shares will now yield 3% after the latest dividend hike. The company has now doubled its dividend payout over the last two years as well.
  2. Insiders have purchased 200,000 new shares over the last six months.
  3. The company has a robust balance sheet with over $3B in net cash on the books (over 15% of its market capitalization).
  4. Corning is very cheap at 90% of book value and just over 6x operating cash flow.
Source: Corning Delivers For Shareholders