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Corning Inc. (NYSE: GLW) stock has dropped more than 6% in early trading today (Tuesday) on news that its Q4 revenue was down 2% from the previous year. Corning also warned investors that it will produce less display glass in 2014's first quarter – but that drop is in line with normal seasonality.
That news initially scared off investors, but there was plenty of bullish information in today's earnings report.
Corning reported Q4 earnings per share of $0.29, which beat analysts' projections of $0.27 and beat last year's earnings per share (EPS) by 4%. The company reported revenue of $2 billion, which also surpassed projections of $1.93 billion.
For the full year 2013, Corning reported core sales of $7.95 billion, up 5% from $7.61 billion in 2012.
GLW also announced that its volume of LCD glass production reached record levels, with a 4% increase from last year.
Display technologies have been the hallmark of Corning's success for the past decade, but the company did report a 12% increase in sales year over year for its "Optical Communications" segment.
That diversification is good news to investors – here's how it will boost the stock this year.
Innovation Key for Corning (GLW)
Corning is a technology-based company, best known for developing the display glass used in smartphones and tablets. According to the company, 37% of its revenue is generated by "display technologies."
It's most well-known product, "Gorilla Glass," has been used in more than 1 billion mobile devices worldwide. Corning has continued to upgrade its hallmark product, unveiling "Gorilla Glass 2.0" in 2012.
Earlier this month, Corning announced a third version of Gorilla Glass at the Consumer Electronics Show 2014 (CES 2014) in Las Vegas. According to the company, the new glass will be 40% more scratch-resistant than previous versions – good news for anyone who has ever dropped their smartphone.
So the name of the game for GLW investors is innovation. As the pioneer of display glass technology for mobile devices, GLW stock has room to grow as long as it keeps ahead of its competitors.
Today, the company spoke briefly about its future plans, which was a good sign for investors…