Will Healthy Top-Line Expansion Boost Corning's Q4 Earnings?

Corning Incorporated GLW is set to report its fourth-quarter 2024 results on Jan. 29, before the opening bell. It delivered a trailing four-quarter earnings surprise of 2.27%, on average. In the last reported quarter, the company reported an earnings surprise of 3.85%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The advanced glass substrates producer is likely to have witnessed revenue growth year over year, owing to healthy demand in several segments, including Optical Communications, Display Technologies and Specialty Materials.Factors at Play for GLW’s Q4 EarningsDuring the quarter, Corning and AT&T inked a multi-year purchase agreement. Per the deal, AT&T will leverage Corning’s industry-leading fiber, cable and connectivity solutions to accelerate fiber network expansion and deliver high-speed reliable Internet across the country. Telecommunication companies have been witnessing a slowdown in the highly competitive and saturated U.S. wireless market.In this backdrop, companies like AT&T have been putting more focus on gaining a market share in the high-speed Internet sector. Verizon is also collaborating with Corning to expand its fiber footprint. This evolving market trend is a major growth driver for Corning. This development is likely to have a favorable impact on upcoming results.Corning’s comprehensive portfolio of data center solutions, which includes optical fiber, hardware, cables and connectors, has been gaining popularity. The growing adoption of innovative optical connectivity products for generative AI applications is a key growth driver in the Optical Communication segment. Our revenue estimate for the Optical Communication segment is pegged at $1.24 billion, indicating healthy growth from $903 million in the year-ago quarter.Lower panel maker utilization is expected to have impacted revenues to some extent in the Display Technologies segment. However, our revenue estimate is pegged at $962.2 million, indicating 10.7% year-over-year growth.Healthy traction in the premium smartphone market is a tailwind for the Specialty Materials segment. Our revenue estimate for this segment is pegged at $508.9 million, up 7.8% year over year.For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3.76 billion, indicating growth from the year-ago quarter’s figure of $3.27 billion. The consensus estimate for adjusted earnings per share is pegged at 56 cents, implying an increase from the year-ago quarter’s 39 cents.Earnings Whispers for GLWOur proven model predicts a likely earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is exactly the case here.GLW’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.05%. The Most Accurate Estimate is pegged at 57 cents, while the Zacks Consensus Estimate is pinned at 56 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.GLW’s Zacks Rank: Corning has a Zacks Rank #2 at present.Corning Incorporated Price and EPS Surprise Corning Incorporated price-eps-surprise | Corning Incorporated QuoteOther Stocks to ConsiderHere are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:PayPal Holdings, Inc. PYPL is scheduled to report quarterly numbers on Feb. 2. The Earnings ESP for the company is +1.36% and it carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Earnings ESP for Qualcomm Technologies, Inc. QCOM is +3.34% and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Feb. 5.The Earnings ESP for InterDigital IDCC is +3.21% and it sports a Zacks Rank of 1 at present. The company is scheduled to report its quarterly numbers on Feb.6.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks