Corning Incorporated (GLW) recently closed the buyout of TR Manufacturing, Inc. The terms of the deal, announced last month, were not made public.
Located in Fremont, CA, TR Manufacturing is an industry leader in providing fiber-optic and copper cable/component interconnects and electro-mechanical assemblies to original equipment manufacturers in a broad array of technology industries.
TR Manufacturing will now become a wholly owned subsidiary of Corning and report under its Optical Communications business segment. Optical Communications contributed 28% of revenues in the last reported quarter. It grew 1.7% sequentially and 7.4% from the year-ago quarter, slightly better than Corning’s guidance of a mid single-digit increase from the year-ago quarter.
With the acquisition, Corning will now be able to strengthen its position as a leading provider of optical solutions. TR Manufacturing’s skill combined with Corning’s global infrastructure will enable the new entity to fulfill customers’ needs for innovative solutions in a better manner.
Corning is a worldwide provider of connectivity solutions. The company’s third-quarter core earnings of 40 cents beat the Zacks Consensus Estimate of 38 cents by a slight margin. Also, revenues of $2.54 billion grew 2.3% sequentially and 22.9% year over year, driven by strong demand across all its major product lines and markets.
The company is expected to report fourth-quarter results on Jan 27.
Other Stocks to Consider
Corning currently has a Zacks Rank #2 (Buy). Other stocks worth considering in this industry include Geeknet, Inc. (GKNT), Mercadolibre, Inc. (MELI) and Liberty Ventures (LVNTA). While Geeknet sports a Zacks Rank #1 (Strong Buy), Mercadolibre and Overstock.com carry a Zacks Rank #2.
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