Tue, Jun. 30, 8:19 AM
- Corning (NYSE:GLW) has struck a deal with German pharma and healthcare glass/plastics maker Gerresheimer (OTC:GRRMF) to acquire the company's pharma glass tubing business for €196M ($219M) in cash (presumably offshore). The deal is expected to close by year's end.
- As part of the deal, Corning and Gerresheimer will enter into a long-term glass tubing supply agreement, and form a JV (75%-owned by Corning) to "focus on accelerating Corning innovations for the pharmaceutical glass packaging market."
- Corning notes drug-delivery advances and industry interest in greater efficiency are driving demand for more stringent pharma glass packaging requirements. It also sees cost synergies, and predicts the deal will allow it to "bring revolutionary new technologies to the pharmaceutical glass packaging market."
- In 2014, Corning's Life Sciences unit (offers PYREX and a variety of other pharma industry glass products) had revenue of $862M (+1% Y/Y) and net income of $87M.
- Yesterday: Barclays' top tech picks: ORCL, GLW, CAVM, TSS
Mon, Jun. 29, 6:15 PM
- Barclays has named enterprise software giant Oracle (NYSE:ORCL), glass giant Corning (NYSE:GLW), network processor/ARM server CPU vendor Cavium (NASDAQ:CAVM), and payment services provider Total System Services (NYSE:TSS) its top Americas tech picks.
- On Oracle: "Oracle is emerging from an extended period of product development and internal changes that position it well to capitalize on key tailwinds through 2016. With better execution in software and stabilization in hardware, we think investor sentiment will become more positive, specifically as quarterly results have been better, and the current valuation makes Oracle shares attractive." Shares are less than two weeks removed from selling off due to an FQ4 miss and light guidance.
- On Corning: "The launch of Gorilla Glass 4 has been successful and additional glass industry dynamics remain beneficial. Other new glass products highlight Corning’s ability to move with the market and compete with non-glass solutions over time. Capital allocation will remain a major component of the story and the company’s large share repurchase program (roughly $1bn remaining) and $0.48 annual dividend should lend support to the stock." Barron's made a bull case earlier this month.
- On Cavium: "CAVM’s base business is levered to strong end market growth trends within the security, wireless infra, and data center end markets, but we also see [addressable market] expansion through its Fusion-M (doubles base station content and likely drives share gains), Liquid IO (gen 2 ramps 2H15), 2/4 core Octeon (addresses FSL $500+ business), and Fusion (small cell) products. ThunderX (ARM server SoC) and XPliant (switch silicon) both add incremental $1bn+ TAMs with disruptive solutions. CAVM will likely need to weather one more quarter without real upside but multiple products are progressing toward material revenue in 2016." CLSA and Needham cited some of the same catalysts in bullish June notes.
- On TSS: "Despite recent accounts on file (AOF) wins (e.g., BMO, TD, BAC) TSS expects to be able to grow North American revenue by mid- to-high single digits organically on an annual basis over the longer term. Given strong drivers such as card transactions (Nilson projects transactions on cards to grow ~7% from 2013 to 2018), and AOF outsourcing trends, we see the implied 5-9% y/y longer-term growth guidance as achievable, particularly when combined with nominal GDP growth."
Tue, Jun. 16, 8:41 AM
- Expecting the company to benefit from a 4K TV upgrade cycle and rising data center investments (lifting optical fiber sales), RBC has upgraded Corning (NYSE:GLW) to Outperform, and set a $26 target.
- Barron's cited those same catalysts (among others) in a recent bullish column. Corning's Display Technologies unit saw revenue fall 13% Y/Y in Q1 thanks to a weak yen (it was up 1% otherwise). Optical Communications division sales rose 18%, thanks to both organic growth and the TR Manufacturing acquisition.
- GLW +1.1% premarket to $20.60.
Mon, Jun. 8, 9:45 AM
- Corning (GLW +0.7%) has a good product pipeline, a compelling valuation, and strong exposure to 4K TV growth, argues Barron's in an upbeat weekend column. "All in all, the picture at Corning is clear and bright."
- The paper notes Corning expects 4K TV shipments to more than double in 2015 to 25M units - JPMorgan sees shipments rising 171% to 33.3M, and another 62% next year to 53.8M - thereby lifting a Display Technologies unit that accounts for 64% of profits. It also sees Corning's antimicrobial glass and bendable Willow Glass, and an optical division benefiting from strong FTTH and data center fiber demand, acting as potential growth engines.
- Barron's adds shares trade for a moderate ~11x expected 2017 EPS, that the dividend yield stands at 2.3% and that Corning "has bought back 12% of its shares outstanding and raised its dividend four times" since 2011. CEO Wendell has stated capital returns will continue growing.
- Shares opened up over 2%, but have since pared their gains.
Mon, Jun. 1, 7:02 PM
- Corning's (NYSE:GLW) Lotus NXT display substrate glass (differs from cover glass such as Gorilla Glass) succeeds Lotus XT (launched in 2013), and is promised to deliver "industry-leading levels of low total pitch variation" for high-res LCD and OLED displays.
- NXT's improved pitch performance is said to enable "display panels that feature up to 100 pixels per inch higher resolutions or up to 15 percent lower power consumption," and also improve panel cell assembly yields by up to 1.5%. Pixel densities for smartphone displays have continued rising; Samsung's Note 4 and Galaxy S6 both sport 2K (2560x1440 displays).
- Prior Corning Glass launches: Iris Glass, Gorilla Glass 4
Wed, May 6, 10:52 AM
- Corning (GLW +1%) is selling $375M worth of senior notes due May 2018, and $375M worth of senior notes due May 2022. The debt respectively carries interest rates of 1.5% and 2.9%.
- The glass giant only says the proceeds will be use for "general corporate purposes." Buybacks are a possibility - Corning spent $500M on them in Q1.
- Corning had $5.1B in cash/short-term investments at the end of Q1 ($2B in the U.S., the rest offshore), and $3.3B in long-term debt.
Wed, Apr. 29, 10:01 AM
- CLSA has downgraded Corning (GLW -3.1%) to Sell from Underperform a day after the company posted mixed Q1 results. The firm thinks LCD TV glass comps will be tougher in 2H15 - the division's revenue fell 13% Y/Y in Q1 thanks to a weak yen - and that high inventories and lower forex hedging gains will also act as headwinds.
- Meanwhile, the company's Dow Corning JV with Dow Chemical (DOW -0.6%) has posted its Q1 results: Revenue fell 11% Y/Y to $1.36B, and adjusted net income 8% to $101M.
- Weak sales of polysilicon (used in solar cell/module production) weighed on Dow Corning's results - the company blames "the timing of customers taking product under long-term contracts." Its silicones business "experienced volume growth in several of its highly specialized product lines, especially for materials sold in construction, healthcare and packaging applications," but also saw a 4.7% revenue growth impact from a strong dollar.
- The JV is less than 5 months removed from announcing it's shutting down a Clarksville, TN polysilicon plant, and taking a related $1.5B-$1.6B charge. On its CC (transcript), Corning stated it expects its share of Dow Corning's earnings will rise to $60M in Q2 (implies total adjusted net income of $120M) from $51M in Q1; silicones sales are expected to be flat Y/Y, and polysilicon sales lower.
Tue, Apr. 28, 9:54 AM
- Corning (GLW -1.2%) had a Q1 gross margin of 41%, up 20 bps Y/Y and better than expected in light of strong forex pressures. That, along with $500M in buybacks, help EPS beat estimates in spite of a revenue miss. A weak yen respectively had $165M and $137M impacts on Q1 sales and gross profits.
- The Optical Communications (fiber) division was a Q1 standout: Sales rose 18% Y/Y to $697M (guidance was for 10%+ growth). Strong North American fiber-to-the-home spending contributed, as did the purchase of fiber/copper interconnect maker TR Manufacturing. Mid-teen growth is expected for the division in Q2; the Samsung fiber division purchase will provide a lift.
- Display Technologies (LCD glass) revenue fell 13% Y/Y to $808M thanks to the yen's weakness; if not for forex, revenue would've risen 1% to $972M. LCD glass volumes rose by a high-teen % Y/Y, price declines (as expected) were moderate, and margins improved. Volumes are expected to fall be a low-single digit % Q/Q in Q2, with price declines even smaller than Q1's.
- Specialty Materials sales rose 4% Y/Y to $272M, thanks to a 20% increase in Gorilla Glass volume - the Galaxy S6 and its dual Gorilla Glass 4 panels helped. Sales are expected to drop by a mid-single digit % Y/Y in Q1, with advanced optics weakness offsetting Gorilla Glass growth. GG4 demand is expected to continue rising in 2H15.
- Environmental Technologies (emissions control) sales rose 3% to $282M. They're expected to fall by a mid-single digit % in Q2 due to a weak euro. Life Sciences sales fell 6% to $197M, and are expected to be down slightly in Q2.
- Q1 results, PR
Tue, Apr. 28, 7:16 AM
Mon, Apr. 27, 5:30 PM
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Tue, Apr. 14, 12:31 AM
- Corning (NYSE:GLW) is partnering with OLED lighting product developer OLEDWorks to create OLED lighting panels that use Corning's Willow Glass - a thin, bendable glass offering that has been aimed in part at the wearables market since launching in 2012.
- Corning asserts its offering is "expected to provide two times the light output of traditional OLED lighting panels, enabling increased efficiency and lower power consumption." OLEDWorks CEO David DeJoy: "[T]he team will significantly improve energy efficiency by creatively integrating Corning’s light extraction technology with OLEDWorks’ formulation science and inventive manufacturing processes. Using Corning Willow Glass in our near-term product roadmap expands our OLED lighting portfolio to provide highly flexible and adaptive design statements for a wider variety of lighting applications.”
- Universal Display (NASDAQ:OLED) is just two months removed from striking a licensing deal with OLEDWorks. The company previously struck agreements with several other OLED lighting firms.
Wed, Apr. 1, 12:43 PM
- Corning (GLW -1.7%) has bought iBwave Solutions, a Montreal-based provider of design/planning, modeling, and management software for in-building wireless networks. Terms are undisclosed.
- Corning states iBwave's software/services are "used by more than 600 global leading telecom operators, system integrators, and equipment manufacturers in more than 80 countries." The company will continue operating under the iBwave name, as a part of Corning's Optical Communications (fiber) unit.
- iBwave's products appear to complement Corning's ONE Wireless platform, which provides integrated mobile, Wi-Fi, and Ethernet backhaul for companies through a mixture of fiber/optical gear and Ethernet switches.
- Previously: Corning partners with Zhone for fiber/wireless enterprise solution
Wed, Apr. 1, 1:24 AM
- "The iPhone 6 (NASDAQ:AAPL) Has Met Its Match," reads the headline for the WSJ's review of Samsung's (OTC:SSNLF) Galaxy S6.
- Reviewer/iPhone 6 owner Joanna Stern: "Like a child who just found out that Santa isn’t real, I have spent the past week questioning everything I know." She's a fan of the S6's glass/metal body with dual Gorilla Glass 4 (NYSE:GLW) panes, as well as its 2K OLED display, improved fingerprint sensor, rapid charging support, and 16MP OIS-capable camera. "The Galaxy S6 destroys HTC’s new One M9 and other flagship Android phones ... on photo quality."
- The Verge's Dieter Bohn gives the S6 8.8/10 stars. "Samsung finally copied the right thing: caring about design." Bohn declares the S6 to have "one of the finest screens I have ever seen on a phone," thanks to a 577 PPI pixel density and improved color awareness. He also calls the device (powered by an 8-core Exynos CPU) "probably the fastest Android phone I’ve ever used."
- BGR's Zach Epstein: "Samsung’s Galaxy S6 features a stunning design that manages to be sleek and elegant, yet modern ... Samsung has raised the bar when it comes to smartphone screens ... Samsung finally stopped obsessing about increasing its [camera] megapixel counts and instead focused on improving its optics, design and software performance ... I’ve never used a phone that charged from empty to full as quickly as this one."
- Samsung's software, though declared to be improved from the S5's (less bloatware, and what remains is often buried), still gets some criticism. Epstein reports seeing a lag with some UI features, and Stern is critical of Samsung's icons and keyboard. Also: Reviewers generally see little reason to pay an extra $100 for the curved S6 Edge, and some Android users might not like the S6's lack of a removable battery or microSD slot.
- Ahead of the reviews, there have been reports Samsung has upped S6 production due to strong early interest. The phone goes on sale on April 10.
- Other reviews: TechCrunch, CNET, Re/code, TechRadar
- Expected S6 suppliers: BRCM, INVN, OLED, SYNA, MXIM, IDTI
- A month ago: Samsung launches metal/glass S6 with Gorilla Glass 4, 2K display, new fingerprint sensor
Tue, Mar. 24, 3:54 PM
- Buyback-happy U.S. firms are prohibited from repurchasing shares from about five weeks prior to releasing quarterly earnings to about 48 hours after those reports. These blackout periods, says Goldman, may offer an especially tasty time for investors to pick up shares of their favorites.
- "High valuations in the absence of corporate demand may weigh on stock prices," says Goldman's Amanda Sneider, and particular areas of focus are tech, consumer discretionary, and financials - they've accounted for more than 50% of buyback activity.
- Goldman's buyback blackout theme buys: SanDisk (NASDAQ:SNDK), Yahoo (NASDAQ:YHOO), Travelers (NYSE:TRV), Apple (NASDAQ:AAPL), Juniper Networks (NYSE:JNPR), Xerox (NYSE:XRX), Torchmark (NYSE:TMK), F5 Networks (NASDAQ:FFIV), Citrix Systems (NASDAQ:CTXS), Aon (NYSE:AON), Moody's (NYSE:MCO), VeriSign (NASDAQ:VRSN), Hartford Financial (NYSE:HIG), Ameriprise (NYSE:AMP), Corning (NYSE:GLW), Time Warner (NYSE:TWX), Seagate Technology (NASDAQ:STX), Viacom (NASDAQ:VIAB), Legg Mason (NYSE:LM), XL Group (NYSE:XL), DirecTV (NASDAQ:DTV), Allstate (NYSE:ALL), Nvidia (NASDAQ:NVDA), CBS (NYSE:CBS), Macy's (NYSE:M), Kohl's (NYSE:KSS).
Sun, Mar. 1, 9:08 PM
- As rumored, Samsung's (OTC:SSNLF) Galaxy S6 eschews the plastic-heavy designs of its predecessors in favor a body with a metal frame and both front and back glass panels - both panels use Corning's (NYSE:GLW) recently-launched Gorilla Glass 4 (offers better damage resistance).
- Also as expected: The standard S6 is accompanied by the S6 Edge, a premium model with curved sides. Samsung has also launched a new version of its Gear VR headset (relies on Oculus' VR platform) that uses the S6/S6 Edge for its display instead of the Note 4.
- The S6's display size is unchanged from the S5's 5.1", but (as was the case for the Note 4) the resolution has been upgraded from 1080p to 2560x1440 - that's a positive for OLED materials supplier Universal Display (NASDAQ:OLED). An 8-core Samsung Exynos processor powers international S6 models - Qualcomm Snapdragon processors have historically powered U.S. models, but that might not be the case this time.
- A new fingerprint sensor (previous) only requires users to touch the home button (a la Apple's TouchID) rather than swipe over it, as is the case with the S5's sensor. Synaptics (NASDAQ:SYNA) should receive an ASP boost, provided it remains Samsung's fingerprint sensor supplier and not rival FPC.
- Other features: Wireless charging support; a 16MP rear camera with optical image stabilization, improved software, and an F/1.9 aperture (good for low-light shots); a 5MP front camera that also has an F/1.9 aperture, 32/64/128GB storage tiers (up from 16/32/64GB); and far less bloatware - Samsung claims the S6 has 40% fewer software features than the S5.
- Initial reactions are positive. "Samsung finally builds a premium smartphone," proclaims Ars Technica. The Verge calls the S6/S6 Edge "dramatically nicer and better phones than Samsung has ever produced." More than a few observers have spotted major design similarities with the iPhone 6 (NASDAQ:AAPL).
- The phones go on sale on April 10. Samsung needs a hit: It's coming off a Q4 where its smartphone unit share fell to 20% from 28.8% a year earlier (per IDC) amid stiff competition from Apple and Chinese Android OEMs.
Sat, Feb. 7, 3:09 PM
- "We have developed a new product that will provide sapphire-like scratch resistance while maintaining the legendary toughness and break resistance of Gorilla Glass," Corning (NYSE:GLW) exec James Clappin stated at yesterday's investor meeting. Corning plans to start selling the composite, known for now as Project Phire, later this year.
- Though Apple (NASDAQ:AAPL) stuck with Gorilla Glass for the iPhone 6 and would-be Apple sapphire supplier GT Advanced (OTCPK:GTATQ) filed for bankruptcy - it's now trying to sell ~2K sapphire furnaces to pay off creditors, with stockholders getting anything left over - there's still strong industry interest in sapphire as a potential smartphone cover glass solution due to its scratch-resistance and thinness; Apple has said it will "continue evaluating" GT's sapphire progress.
- Meanwhile, Apple Watch and other smartwatches have adopted sapphire cover glass, and sapphire wafer/materials provider Rubicon (NASDAQ:RBCN) recently announced it's working on "scratch-resistant sapphire-coated faceplates for smartphones and larger devices," as part of a broader effort to expand into new markets. Concerns about the material's cost and brittleness remain.
- Also disclosed by Corning: 1) The Display Technologies (LCD glass) segment is expected to see 2015 earnings growth comparable with 2014 levels. 2) Corning's glass sales related to large-size LCD TVs rose over 50% in 2014 on a unit basis; it forecasts 30%+ growth in large-size LCD viewing area by 2016. 3) The Optical Communications (fiber) business is expected to see high-single digit 2015 growth, aided by strong sales to the last-mile fiber, data center, and distributed antenna markets. (investor day slides)
Corning Inc is engaged in manufacturing of specialty glass and ceramics. The Company's segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.
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