Corning Up on Bright Outlook

Shares of high-tech component maker Corning (GLW) were up 3% to $23.60 Tuesday morning as CFO James Flaws was set to deliver an upbeat outlook for the LCD industry and Corning's Display Technologies unit. "We expect to utilize our effectively combined measures of robust cost reductions, strategic pricing and innovative technology development for continued success in 2008," Flaws said in a press release. He also said Corning's diesel business "has had an excellent year" with 55% sales growth and gross margin improvements. For 2008, Corning expects strong sales and margin growth from its heavy-duty unit. Flaws is also expected to reiterate the firm's Q4 guidance of adjusted EPS of $0.39/share on $1.5 billion in sales. (Press release)

Also Tuesday, Deutsche Bank reiterated its Buy rating on Corning and $31 price target. Analyst Carter Shoop noted the first weekend of U.S. holiday shopping was in-line to better-than-expected for consumer electronics. Shoop also said the current yen/dollar exchange rate of 108 is eight points below Corning's Q4 forecast, translating to a $0.07/share benefit not yet reflected in consensus estimates. He believes positive commentary about holiday LCD TV sales and the continued appreciation of the yen will boost share prices.

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