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Will Higher Revenues Benefit Corning (GLW) Q3 Earnings?

Corning Incorporated, Inc. GLW is scheduled to report third-quarter 2022 results on Oct 25, before the market opens. In the last reported quarter, the company delivered an earnings surprise of 1.8%. It pulled off a trailing four-quarter earnings surprise of 3.6%, on average.

The New York-based communications components provider is expected to have recorded year-over-year higher revenues, driven by healthy sales of fiber-optic solutions.

Factors at Play

During the third quarter, Corning expanded its optical cable manufacturing capacity by setting up a new production facility in Gilbert, AZ. It also opened a new production facility in Mszczonów, Poland. As optical networks are more efficient and most existing networks are copper-based, the demand for optical solutions is solid, and the investments are likely to help meet the increasing demand for high-speed connectivity via large-scale production of low-cost optical fibers. These are likely to get reflected in the upcoming results.

In the to-be-reported quarter, Corning announced it will receive $103.8 million in additional funding from the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority for its planned manufacturing expansion of advanced, high-quality pharmaceutical glass tubing and vials. This is likely to have benefited the Life Sciences segment revenues in the quarter. The consensus estimate for Life Sciences stands at $323 million, which implies an increase from $305 million reported a year ago.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $3,667 million, which indicates growth from the year-ago quarter’s reported figure of $3,639 million. The consensus estimate for adjusted earnings per share is pegged at 51 cents, suggesting a decline from the prior-year reported earnings of 56 cents.

Earnings Whispers

Our proven model does not predict an earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Corning Incorporated Price and EPS Surprise

Corning Incorporated Price and EPS Surprise
Corning Incorporated Price and EPS Surprise

Corning Incorporated price-eps-surprise | Corning Incorporated Quote

Zacks Rank: Corning currently has a Zacks Rank #3.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Sensata Technologies Holding plc ST is set to release quarterly numbers on Oct 25. It has an Earnings ESP of +2.92% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for NETGEAR, Inc. NTGR is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.

The Earnings ESP for Apple Inc. AAPL is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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