Boston, MA 10/28/2013 (wallstreetpr) – Specialty ceramics and glassmaker Corning Incorporated (NYSE:GLW) stocks registered a 20% spike in trading recently after Corning acquired remainder stake of Korean technology giant Samsung in their joint venture Samsung Corning Precision Materials Co.
USA-based Corning, the prominent gainer of the Standard & Poor’s (S&P) 500 Index recently, surged almost 16% in the wake of the Samsung deal. Under this deal, Corning takes full control of the joint venture, and in exchange for its share of the venture, Samsung will invest around $2.3 billion in Corning, retaining a 7% ownership stake. The deal is expected to bolster growth in an industry facing receding sales due to consumers preferring smaller devices, causing slowing sales of large-screen devices like televisions.
Meanwhile, Corning’s pre-announced earnings and revenue for the third quarter are in line with market expectations. Analysts and experts alike place emphatic value in Corning stocks, considering its limited competition and lucrative strengths including revenue growth, surging profits, good financial standing, reasonable debt levels, stock price spikes and growth in earnings per share. Experts consider the Samsung deal financially sensible due to immediate accretion and the obvious advantages of a long-term strategic partnership.
The world’s leading ceramics and glassmaker’s revenue growth has outpaced the industry average of 2.1%. Compared to the same quarter a year ago, revenues rose by 3.9%, boosting earnings per share. Its low debt-to-equity ratio of 0.14 is below the industry average, implying good management of debt levels. Its quick ratio of 4.24 proves the company’s ability to quickly cover short-term liquidity needs.
Other investor delights are Corning’s impressive 56.76% gross profit margin, consistently on the rise from the same quarter of FY2012, and its net profit margin of 32.18% which again significantly outshines the industry average. Corning’s market capital is now about $25.34 billion with a stock dividend yield of 2.29%. Despite somewhat volatile earnings reported recently, analysts remain unfazed this year and estimate increased earnings per share of $1.25 versus the earlier $1.15.
Corning stocks were down by $0.13 at $17.35 on October 25 trading close. After-hours trading saw little change from the $17.35 figure.
