GLW – Market expectations are for Uniform ROA expansion, but management may have concerns about growth, pricing, and innovation

• Corning Incorporated (GLW:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 19.4x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about sales growth, product pricing, and innovation.
  
• Specifically, management may lack confidence in their ability to maintain company sales growth, preserve margins, and sustain order book growth. In addition, they may have concerns about product pricing, cost mitigation initiatives, and a year-over-year decline in TV units. Also, they may be exaggerating the capabilities of their Life Sciences innovations and opportunities in the pharmaceutical packaging market. Furthermore, management may lack confidence in their ability to sustain momentum in the Display Technologies, Life Sciences, and Environmental business segments, continue creating breakthrough products and processes, and maintain their build project performance. Additionally, they may have concerns about tight glass supply in upcoming quarters and increased shipping and raw material costs.