Corning’s LCD Forecast Not Worth Tuning Into; Shares Plunge (GLW, FNSR, EMKR, JDSU, OCLR, MRVC)
Shares of Corning (GLW), the maker of LCD glass used for flat screen televisions, are plunging 6% after the company pared its forecast for the global glass as TV makers are lowering their own sales projections due to tepid expectations for holiday sales. New York-based Corning said consumer electronics makers view consumers as concerned about global economic growth, a sentiment that is leading to scaled-back purchases of discretionary items such as high-end TVs.
That’s not good news for the Optical Networking Stocks Index, which is off 3.4%. Corning lowered its forecast for the global glass market to between 3.3 billion and 3.4 billion square feet this year, versus previous expectations of 3.5 billion to 3.7 billion square feet, according to Reuters.
Making matters worse, Corning said that its second-quarter profit fell to $755 million, or 47 cents per share, from $913 million or 58 cents per share, a year earlier. On an adjusted basis, the company earned 48 cents a share, barely beating the consensus estimate of 47 cents.
Looking at other Index members, Finisar (FNSR) is tumbling 7% while Emcore (EMKR) is down 6%. JDS Uniphase (JDSU) and Oclaro Inc (OCLR) are both off 5%. With a gain of 1%, MRV Communications (MRVC) is the only Index member higher on the day.
Investors can track the Optical Networking Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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