Citi analyst Asiya Merchant has increased the price target for Corning (GLW, Financial) from $52 to $60, maintaining a Buy rating on the stock. This adjustment comes as the company approaches its second-quarter earnings report, scheduled for July 29. The firm is optimistic about positive short-term trends across Corning's various segments, which supports this favorable outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Corning Inc (GLW, Financial) is $54.64 with a high estimate of $60.00 and a low estimate of $46.30. The average target implies an upside of 4.55% from the current price of $52.26. More detailed estimate data can be found on the Corning Inc (GLW) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Corning Inc's (GLW, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Corning Inc (GLW, Financial) in one year is $39.98, suggesting a downside of 23.5% from the current price of $52.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Corning Inc (GLW) Summary page.
GLW Key Business Developments
Release Date: April 29, 2025
- Revenue: $3.7 billion, up 13% year over year.
- Earnings Per Share (EPS): $0.54, up 42% year over year.
- Operating Margin: Expanded by 250 basis points to 18%.
- Return on Invested Capital (ROIC): Increased by 300 basis points to 11.6%.
- Optical Communications Sales: $1.4 billion, up 46% year over year.
- Enterprise Sales: $705 million, up 106% year over year.
- Display Sales: $905 million, up 4% year over year.
- Specialty Materials Sales: $501 million, up 10% year over year.
- Automotive Sales: $440 million, down 10% year over year.
- Life Sciences Sales: $234 million, down 1% year over year.
- Free Cash Flow: Essentially break-even for the first quarter.
- Capital Expenditure (CapEx): Expected to be approximately $1.3 billion for the year.
- Share Buybacks: $100 million invested in share repurchases in the first quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Corning Inc (GLW, Financial) delivered outstanding first-quarter results, exceeding guidance with a 13% year-over-year sales growth to $3.7 billion.
- The company expanded its operating margin by 250 basis points year over year to 18%, showcasing improved profitability.
- Corning Inc (GLW) is confident in its ability to deliver its Springboard plan, aiming to add more than $4 billion in annualized sales and achieve a 20% operating margin by the end of 2026.
- The company is experiencing strong demand for its US-made innovations, particularly in optical communications, solar, and mobile consumer electronics.
- Corning Inc (GLW) has committed customers for 100% of its solar capacity available in 2025 and 80% for the next five years, indicating strong future demand.
Negative Points
- The financial impact of existing tariffs, primarily between the US and China, is estimated to be $0.01 to $0.02 per quarter, which could affect profitability.
- Corning Inc (GLW) faces temporarily higher costs associated with ramping up production for new products in optical communications and solar, impacting short-term earnings.
- The automotive segment experienced a 10% year-over-year decline in sales, primarily due to softness in European markets and the North America Class 8 market.
- The life sciences segment saw a slight decline in sales, down 1% year over year, indicating challenges in this area.
- Despite strong demand, the company faces potential risks from macroeconomic downturns, which could impact its growth trajectory.
