Corning Stock Slide After 2Q Earnings Seen as Overdone

Dow Jones
07/30

1430 ET - The 12% drop in Corning's stock after its 2Q earnings on Tuesday was overblown, said UBS analysts in a research note. They said that investors are expecting faster growth, but Corning's pushing its contracts to the long term, creating more visibility and stability for its future earnings. In the report, earnings beat expectations in all segments, except solar, which was impacted by start-up costs. The firm also said that Corning is more optimistic about the profitability of its optical business. The analysts reiterate their buy rating.

 

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