If you want to get a read on consumer spending, you gotta know where to look.
I believe that direct gadget designers like Garmin
That's why I like glass-panel manufacturer Corning
So when Corning reported massively improved second-quarter results this morning, tech investors had to sit up and take notice. The company has restarted much of the glass manufacturing capacity it had put in storage in recent quarters, kick-starting net sales with a 41% sequential jump to $1.4 billion. Non-GAAP earnings nearly quadrupled to $0.39 per share. Sure, shares are down this morning, most likely because Corning failed to give precise top- and bottom-line estimates for the business. Don’t be fooled by the market’s myopia, however -- this was a great quarter.
CEO Wendell Weeks explained that "the resurgent demand for LCD glass is propelling us to restore much of our previously idled production capacity as quickly as possible to meet our customers' needs." CFO James Flaws expanded on the market outlook, where full-year LCD shipment volumes are set to increase 15% over 2008 levels "due to the vitality of LCD TV sales in the first half of the year. We now estimate that total yearly volume will be around 2.3 billion square feet."
These drastic upward revisions of Corning’s volume, sales, and profits seem to contradict negative signals from the likes of Microsoft
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Apple is a Motley Fool Stock Advisor selection. Dell and Microsoft are Motley Fool Inside Value picks. Garmin is a Motley Fool Global Gains selection. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.