Shares of Corning Incorporated GLW fell as much as 8.4 percent after the LCD panel maker reported mixed quarterly results and a software glitch that cut revenue by $100 million in the quarter.
For the first quarter, Corning reported core EPS of $0.28, in line with estimates. But, core sales of $2.17 billion missed consensus estimate of $2.23 billion.
On a sequential basis, display technologies sales dropped 8 percent and optical communications revenue fell by 17 percent. However, environmental technologies revenue rose 4 percent.
"Trading at 16x our CY:16 EPS estimate (vs. 12x historically) as LCD panel makers trade near trough levels and the LCD supply chain continues to struggle, we believe Corning has limited upside from current levels and especially given the negative, long-term secular trends in the LCD complex and Corning's high exposure to the industry," Drexel Hamilton analyst Brian White said.
For the second quarter, Corning expects total LCD glass volume "to increase by a high-single digit percentage" quarter-over-quarter, and price declines are expected to be less than the first quarter. Optical sales are expected to rise over 20 percent sequentially "as seasonal demand rises and as cable production recovers to normal levels with the resolution of manufacturing software implementation issues.
"Based on Corning's 2Q:16 sales outlook by segment, we estimate the company's sales outlook in aggregate can approach our revenue projection of $2.43 billion and the Street ($2.43 billion)," said White, who has a Hold rating on the stock.
Late Tuesday afternoon, Corning was down almost 8 percent at $19.30.
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