GLW....Corning beats estimate by 9 cents: cbs.marketwatch.com
CORNING, N.Y. (CBS.MW) -- Corning's first-quarter earnings rose more than 75 percent from the previous year's first quarter and came in well ahead of Wall Street estimates, buoyed by strong demand for the company's optical fiber and optical networking products.
Today on CBS MarketWatch
Nasdaq extends run
Microsoft shares rebound
EBay tops Street targets
Erdman: Euro slumps further
Compaq cuts costs
More top stories...
CBS MarketWatch Columns
Updated:
04/26/2000 12:26:56 AM ET
After the market closed, Corning (GLW: news, msgs) recorded net earnings of $178 million, or 64 cents a share, excluding special items, up 78 percent from the $92.5 million, or a 36-cent, profit recorded in the same quarter a year ago.
Analysts had projected a profit of 55 cents a share, according to First Call. First Call figures include amortization of goodwill.
On a pro forma basis, net income came in at $188.3 million, or 68 cents, which excludes goodwill. In the year-ago period, the company earned $97.9 million, or 38 cents a share.
Quarterly revenue jumped 36 percent to $1.35 billion from a year-ago $997 million.
The company said it expects pro forma earnings growth of 35 percent for the year 2000 and, as a result, is raising full-year per-share earnings guidance to the range of $2.70 to $2.75 per share.
Corning attributed its revenue numbers to the strong optical fiber sales, with demand increasing more than 50 percent and demand for Corning Leaf optical fiber tripling in the quarter. Also, sales in the company's photonic division increased 90 percent, led by demand for optical amplifiers.
In a separate release, Corning said it has agreed to acquire the remaining equity in NZ Applied Technologies for up to $150 million in Corning stock. Corning already owns 20 percent of the photonics components manufacturer.
As part of the agreement, a significant portion of the purchase price is contingent on NZ Applied Technologies' achieving certain product development milestones.
"The rapidly growing demand for broadband communications services, such as high-speed Internet connections and on-line video, is outstripping the capacity of communications service providers," said Jean-Louis Malinge, Corning's passive-components business director. See press release.
Corning shares lost 1 1/8 to close at 151 ahead of the news. |
