Shares of tech giant Corning (NYSE:GLW) were up today after it announced a good quarter. Analysts expected earnings per share of $0.30, which Corning beat by a penny, sending shares up 3% in the pre-market.
But why would a $0.01 beat on EPS send shares up so much? On today's Stock of the Day, Motley Fool analyst Jamal Carnette explains that analysts are keeping a keen eye on Corning's display technologies segment, which makes LCD displays for TVs. That segment reported a hefty 58% increase in core sales year over year, which is likely the reason behind the initial jump in share price. That said, some of that impressive result was due to the joint LCD venture with Samsung last year, but, on the other hand, Corning's management team has done an admirable job of providing the earnings accretion and cost synergies they promised.
So should investors get in on the action? Jamal says he has it on his watchlist -- he's keeping a close eye on Corning's specialty materials segment, which is where its famous Gorilla Glass comes from. Gorilla Glass, one of Corning's most popular products, will be seeing a lot more competition soon from GT Advanced Technologies and Universal Display. On top of all that, Corning's near multiyear highs right now, which is enough for Jamal to stay on the sidelines.