Cornings Shares Stall Again

Investing Ideas (3)

Corning Inc (NYSE:GLW) is cursed with a lame stock price and it's been no picnic for its shareholders. YTD the stock is down 6% but worse yet when compared to the past few years.

Corning's shares have dropped 48% since Feb 2011 while the Dow Jones and S&P 500 have gained 13%.  The 3% dividend yield is hard a consolation prize for a stock that can't seem to buck the trend despite its amazing Gorilla Glass products. Corning managed to beat the street on its earnings call this past week, but only by 1 penny.  Q4 earnings per shares came in at 34 cents which was one cent higher than what Wall Street expected. It's the issue of future growth and Corning hasn't convinced investors its going to increase by much.  Revenue for Q4 was decent at $2.15 billion a 14% increase from the prior Q4. 

Corning expects its pricing to stabilize so perhaps 2013 can shape up for shareholder gains. The company said it continues to face an uncertain global economy, but it sees prospects for growth in its specialty materials, telecommunications, environmental technologies and life sciences segments. It expects market share in its LCD glass business to be stable and price declines to be moderate.

Corning Inc (GLW) shares have traded between $10.62 and $14.58 over the past 12 months.  GLW shares are now trading with a P/E Ratio of 10.4 and EPS of 1.15.

Bottom line: If Corning can prove to the Street it can beat expecations, its shares will be rewarded.  Until that time, expect the same level of trading.

 

GLW

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