Corning Stock (NYSE: GLW) is set to report its Q1 2024 results on Tuesday, with revenue expected to reach $3.1 billion and adjusted earnings of $0.35 per share, in line with consensus estimates. The company anticipates Q1 to be a slow quarter, with growth expected in the coming quarters. While the stock is expected to perform as predicted in Q1, it is considered to be appropriately priced according to analysts. Corning’s Earnings Preview analysis provides a detailed outlook on how the company’s revenues and earnings are likely to trend for the quarter.
Looking at Corning’s stock performance in recent years, there has been a decline of 15% from early January 2021 to now. GLW’s returns were 3% in 2021, -14% in 2022, and -5% in 2023, while the S&P 500 saw returns of 27% in 2021, -19% in 2022, and 24% in 2023. Despite underperforming the S&P in some years, the Trefis High Quality Portfolio, including 30 stocks, has outperformed the benchmark index each year over the same period, with better returns and lower risk.
The current uncertain macroeconomic environment, with high oil prices and elevated interest rates, raises questions about Corning’s performance in the next 12 months. From a valuation perspective, analysts believe Corning is fully priced, with a valuation estimate of $32 per share based on a 17x P/E multiple for GLW and expected earnings of $1.89 per share for the full-year 2024. This valuation is close to the current price of $31 per share and compares to the stock’s average 18x P/E multiple over the last five years.
In the previous quarter, Corning reported a 10% y-o-y decline in revenue to $3.3 billion, mainly driven by a 24% decrease in optical communications sales. However, the company saw its adjusted operating margin expand 230 bps y-o-y to 16.3% in Q4. Lower revenues and margin expansion resulted in earnings of $0.39 per share, compared to $0.47 per share in the prior year period. In the latest quarter, sales are expected to decline 7% y-o-y due to lower optical communication sales, but Corning could benefit from higher panel maker utilization and pricing actions.
Although Q1 is expected to be a subdued quarter for Corning, the company’s stock is likely to react to any revisions in guidance. While GLW stock is considered to be appropriately priced, it is important to also analyze how Corning’s peers are performing on key metrics. Investors can find valuable comparison insights for companies across industries through Peer Comparisons. Overall, the upcoming Q1 results and guidance updates will provide more clarity on Corning’s performance and outlook in the market.
