SSB Cuts Estimates on Corning
Salomon Smith Barney cut its estimates on shares of Corning (GLW ).
Analyst Timothy Anderson cuts his $1.40 2001 EPS estimate to $1.35 and cut his $1.75 2002 to $1.70 to reflect the lower visibility in optical components and fiber markets associated with Nortel Networks. He says the Nortel news implies that carriers are moving to better utilize their existing network capacity, at the expense of adding fiber and photonic capacity. Anderson says Corning's new guidance implies $250 million-$350 million less revenue, and also suggests the JDS Uniphase model may be too aggressive. He remained optimistic about the long-term prospects for both companies.
On Friday, Corning lowered its 2001 photonic technology revenue growth rate to 50% from 75%-90%.