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.
Related Stories
- Mad Money’s Jim Cramer Interviews Corning’s CFO
- Will Apple Q1 Surprise Beat iPhone Rivals?
- Did
Black Friday Save Best Buy's Earnings?
______________________________________________________
Got something to to say? Send us an e-mail at
fastmoney-web@cnbc.com and your comment might
be posted on the
Rapid Recap.If you'd prefer to make a comment, but
not have it published on our Web site, send those e-mails to
fastmoney@cnbc.com .
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;
For James West
West is long gold
For Jim Flaws
Flaws owns GLW
For David Strasser
Janney Montgomery Scott is a market maker in the securities
of BBY, and may at any time hold a long or short position
in this security.
Janney Montgomery Scott may seek compensation for investment banking services from the subject company (ies) BBY security in the next 3 months.
The research analyst is compensated based on, in part, Janney Montgomery Scott's profitability, which includes its investment banking revenues.
For Chris Danely
Lead or Co-manager: J.P. Morgan acted as lead or co-manager
in a public offering of equity and/or debt securities for
Texas Instruments within the past 12 months.
Client: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: Texas Instruments.
Client/Investment Banking: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as investment banking clients: Texas Instruments.
Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients, and the services provided were non-investment-banking, securities-related: Texas Instruments.
Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients, and the services provided were non-securities-related: Texas Instruments.
Investment Banking (past 12 months): J.P. Morgan received in the past 12 months compensation for investment banking Texas Instruments.
Investment Banking (next 3 months): J.P. Morgan expects to receive, or intends to seek, compensation for investment banking services in the next three months from Texas Instruments.
Non-Investment Banking Compensation: J.P. Morgan has received compensation in the past 12 months for products or services other than investment banking from Texas Instruments.
For Macneil Curry
No disclosures.