Corning: The 'Gorilla' Surprises

| About: Corning Inc. (GLW)
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I do not want to get too carried away, but the beat goes on with corporate earnings beating street estimates. The latest is a company that I owned, sold, and will now buy again, today at some point - Corning Incorporated (NYSE:GLW).

Even though they dropped from last year's earnings, from $.31/share to $.30/share, they surprised the Street by beating the high side estimates of $.28/share.

Here are some snippets:

7:19AM Corning beats by $0.02, beats on revs 13.35 : Reports Q1 (MAR) earnings of $0.30 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.28; revenues fell 0.2% year/year to $1.92 bln vs the $1.87 bln consensus.

Outlook: "After two successive quarters of significant LCD glass price declines, we expect our price declines will be much more moderate this quarter," James B. Flaws, vice chairman and chief financial officer, said. At the same time, Flaws pointed out that LCD glass volumes are expected to be consistent in the company's wholly owned business and up slightly in Samsung Corning Precision this quarter. The company expects stronger LCD glass volume growth later in the year, driven primarily by normal retail seasonality. Telecommunications segment sales are expected to grow in the range of low to mid-teens, driven by continued strong demand worldwide for fiber-to-the-home products, enterprise network solutions, and fiber and cable products.... Fiber-to-the-home demand is expected to remain robust in North America, parts of Europe, and Australia... Specialty Materials segment sales are anticipated to grow in the range of 10% to 15%, driven primarily by the continued demand for Corning Gorilla Glass for the handheld and information technology markets... Environmental Technologies segment sales are expected to be consistent with the first quarter, which was a record in sales and profitability for the business segment. In the Life Sciences segment, Corning forecasts sales to increase in the range of 5% to 10% as the company realizes the full synergies of recent acquisitions.

Dow Corning's equity earnings in the second quarter are expected to improve, driven by volume increases in the silicone and polysilicon markets. Corning's tax rate in the second quarter is expected to be approximately 20%, in line with the first quarter.

Really looks encouraging enough for me to re buy this stock as it can also take advantage of an economic recovery. You can read the report right here and decide for yourselves.

Action Right Now

Corning Inc. (<a href='' title='Corning Inc.'>GLW</a>)

The PPS popped a bit yesterday, back over $13.30/share and the pre market indication is up to over $14.25/share. This reflects the first positive forward looking comments from Corning since last year.

The worst MIGHT be behind this stock and as much as I was correct that it was dead money when I called for a sell on the shares, now it appears that the corner could be turned and we could see significant upside ahead.

My Opinion

With the good news today, and a nice little dividend yield of 2.4%, we just might be able to fit this into our core portfolio. The sooner the better in my opinion.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GLW over the next 72 hours.