Corning (NYSE:GLW) advanced soon after Monday’s opening bell, following Deutsche Bank upgrading the stock to buy from hold. Analyst Matthew Niknam said the tech firm specializing in glass and ceramics is “turning a corner” on revenues and earnings per share.
The bank sees positive inflections ahead for Corning's display and optical divisions, which will ultimately boost its top and bottom-line performance. "1Q23 results will mark the bottom for revenue and earnings," said Niknam.
The company shares fell in late January after it issued disappointing guidance for first quarter . The outlook reflected impacted consumer sentiment and labor availability in some industries in China, delay in display industry recovery by at least one quarter, and lower OEM production levels in environmental segment, Corning noted at the time.
The word is that Corning expects weaker first-quarter results due to the impact of COVID-related policy changes in China on key end-markets such as TV, smartphone, and automotive, as well as slower-than-expected recovery in its Optical segment due to delays in Telco projects. However, the company anticipates that the first quarter will be the weakest quarter and expects sequential revenue growth in the second quarter, with year-over-year revenue growth in the second half of the year. Corning is optimistic about a rebound in panel demand, despite low TV retail demand, due to low inventory levels.
GLW shares grew 57 cents, or 1.7%, to $33.42.
