Corning faced increasing fourth-quarter price pressure in its screens for mobile phones and flat-panel TVs, but CFO Jim Flaws said Monday on “Fast Money” that demand remained strong looking ahead.
“We think television’s actually behaving quite well retail,” he said. “We think that eventually flows through to us.”
Flaws cited a 19 percent year-over-year increase in the sales of TV units the week of Black Friday as a bright spot.
The manufacturer of , which is widely used in smartphones, tablets and TVs, cut its profit outlook for the final quarter of 2011 and announced plans to curtail production. Flaws said a South Korean customer cut its orders, leading to the revision.
“We’re still shipping to them, just not as much as we had hoped,” he said.
Corning closed at $13.48 per share, down 2.25 percent.
“Fast Money” pro Joe Terranova sounded bearish on the company, citing the challenges facing the company were structural, particularly overcapacity and lower prices.
“They’re losing market share,” he said.
Trader Tim Seymour said he wasn’t terribly concerned about the outlook and that the inventory situations could work itself out.
“The demand story is very impressive,” he said. “I think the backdrop to this is only getting better.”
Trader Guy Adami said its current price made the stock interesting, adding that it could slip to the $12.50 range with a possible upside of 75 cents.
“It’s an amazingly volatile stock, given the size of the company,” he said.
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Trader disclosure: On Dec. 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Seymour is long AAPL; Seymour is long BAC; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns INTC; Adami owns AGU; Adami owns NUC; Adami owns BTU; Terranova is long ; Terranova is long SU; Terranova is long CAT; Terranova is long CNI; Terranova is long LQD; Terranova is long MUB; Terranova is long IBM; Terranova is long EMC; Terranova is long SWN; Terranova is long SBUX; Finerman is long AAPL calls; Finerman is long BAC; Finerman is long GLW; Finerman’s firm is long AAPL; Finerman’s firms is long JPM; Finerman’s firm is short IBM calls; Finerman’s firm GLW; Nations is long SPY; Nations is long C;
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