Corning (GLW, $27.77) lowers revenue guidance; Apple awards $250 million for Corning's R&D
Corning shares declined in premarket Tuesday, after it slashed third quarter guidance for its display and optical communications segments. But some of the downside in the shares was potentially arrested by Apple's announcement of granting $250 million to the maker of specialty glass and advanced optics.
Corning is now expecting a reduction of between -3% and -5% of revenue in its optical communications segment, compared with its previous forecast of a low-to-mid-single digit percentage increase. Analysts polled by FactSet were forecasting a +4.3% increase.
According to Corning's latest prediction, its third-quarter display technologies prices would be flat sequentially, and its full-year glass prices would decline by a low-to-mid-single-digit percentage. Analysts expected that segment to increase 2.1%.
But what probably mitigated some of Tuesday’s headwinds to Corning’s stock was an announcement from Apple – which uses Corning’s glass for its iPhones and smartwatches. On Tuesday, Apple posted on its website that it is awarding $250 million from its Advanced Manufacturing Fund to Corning towards supporting Corning’s research and development into state-of-the-art glass processes, equipment and materials to be incorporated in next-generation consumer devices.
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Notable companies
The most notable companies in this group are Corning (NYSE:GLW), Universal Display Corp (NASDAQ:OLED).
Industry description
The Electronic Components industry produces electronic equipment for industries and consumer electronics products, such as mobile devices, televisions, and circuit boards. TE Connectivity Ltd, for example, is a company that designs and manufactures connectivity and sensor products for harsh environments in various industries, such as automotive, industrial equipment, aerospace, and oil & gas. Another major player, Corning Inc., makes advanced optics including end-to-end fiber and wireless solutions for communications networks along with various other technologies catering to industrial and scientific applications.
Market Cap
The average market capitalization across the Electronic Components Industry is 5.84B. The market cap for tickers in the group ranges from 3.89K to 436.14B. MAWAF holds the highest valuation in this group at 436.14B. The lowest valued company is ALPE at 3.89K.
High and low price notable news
The average weekly price growth across all stocks in the Electronic Components Industry was -0%. For the same Industry, the average monthly price growth was 2%, and the average quarterly price growth was 9%. TNLX experienced the highest price growth at 53%, while SELX experienced the biggest fall at -19%.
Volume
The average weekly volume growth across all stocks in the Electronic Components Industry was 62%. For the same stocks of the Industry, the average monthly volume growth was 68% and the average quarterly volume growth was 300%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 38
P/E Growth Rating: 49
Price Growth Rating: 55
SMR Rating: 75
Profit Risk Rating: 72
Seasonality Score: 2 (-100 ... +100)