Corning (NYSE:GLW) Will Best Revenue Estimates, But Nowhere to Go

While Corning (NYSE:GLW) should easily beat revenue estimates in the fourth quarter, the overall LCD sector continues to look anemic, with very little in the way of catalysts, and that will continue to weigh on companies with heavy exposure to LDCs for the foreseeable future.

Ticonderoga says, "We believe that Corning will handily beat our 4Q10 revenue estimate of $1.48 billion and exceed the Street estimate of $1.60 billion, while beating our EPS estimate of $0.47 (Street is also at $0.47). We did not adjust our model for the upside Corning discussed at its wholly owned LCD glass and environment technologies businesses that positively impacts sales, nor the downside in SCP and the tax adjustment that impacts earnings. Corning's adjusted view (12/8/10) had a minor impact to earnings, in our view. Corning's revised expectations for 4Q10 calls for LCD glass volume at its wholly owned subsidiary to rise by 10% sequentially, while volumes at SCP are expected to fall by 5-10% sequentially. Keep in mind, LG Display (NYSE:LPL)(Sell) is a customer for SCP and last week reported a 10% Q/Q uptick in LCD panel volume during 4Q10 but inventories fell by 11% Q/Q and pricing declined 11% Q/Q. Large-size unit shipments for our Taiwan LCD Barometer rose 3% Q/Q in 4Q10."

Ticonderoga reiterates a "Sell" rating on Corning (GLW), which closed Monday at $19.64, gaining $0.31, or 1.60 percent. Ticonderoga has a price target of $12.25 on Corning.