Corning released their First Quarter 2012 results this morning, and the company as expected continues to be quite healthy and the shares undervalued. One of the primary reasons we purchased the shares just over four months ago was because of the growth in the company's other business segments which the market appeared to be overlooking given the decline in the Display Technologies business, its largest single segment. However, the display business is not larger than the other segments combined, all of which are still growing healthy.
Nonetheless, the company, on a positive note did indicate that the rate of decline in "Display" should now slow with CFO James B. Flaws commenting:
"After two successive quarters of significant LCD glass price declines, we expect our price declines will be much more moderate this quarter…"
The market responded in the pre-market session by driving the shares up as high as $14.40. What we still can’t understand is the markets singular focus on this one business segment, especially in light of substantial acquisitions the company is making in it’s other businesses such as the purchase of the majority of the assets of the BD (Becton, Dickinson and Company) Biosciences Discovery Labware unit for approximately $730 million to add to it’s Life Sciences segment which is already growing 8% quarter over quarter.
Here is the numbers to illustrate our point:
|Segment||Rev. (in Millions)||Sequential Perf.|
|Total/Avg. of other segments*:||706||14%|