We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Corning (GLW) Up 5.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Corning (GLW - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corning due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Corning Surpasses Q2 Earnings Estimate on Higher Revenues
Corning Incorporated reported strong second-quarter 2024 results, wherein both the top line and bottom line surpassed the respective Zacks Consensus Estimate. The advanced glass substrates producer witnessed a revenue expansion year over year, driven by healthy demand in the Optical Communications, Display Technologies and Specialty Materials segments. The growing adoption of new optical connectivity products for generative AI is a tailwind.
Net Income
On a GAAP basis, the company reported a net income of $104 million or 12 cents per share compared with $281 million or 33 cents per share in the year-ago quarter. Higher cost of sales and increase in operating expenses impeded the net income during the quarter.
Core earnings were $407 million or 47 cents per share, up from $388 million or 45 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
Revenues
Net sales, on a GAAP basis, was $3.25 billion, marginally up from $3.24 billion reported in the year-ago quarter. Solid traction in several verticals boosted net sales. Core sales were up 4% to $3.6 billion. The top line beat the consensus estimate of $3.49 billion.
Segment Results
Optical Communications generated $1.11 billion in revenues, up 4% from $1.07 billion in the year-ago quarter. The top line beat our estimate of $950.8 million. Net income from this segment improved to $143 million from $140 million reported in the year-ago quarter. Solid demand for new optical connectivity products for generative AI applications propelled net sales in the Enterprise vertical of this segment.
Display Technologies registered $1.01 billion in revenues, up 9% year over year. Net sales beat our revenue estimate of $930.3 million. The segment’s net income was $258 million compared with the prior-year quarter’s figure of $208 million. Higher volume and the company’s strategy of price hikes supported the top line.
Net sales from Specialty Materials stood at $501 million, up 18% year over year, backed by solid demand for premium glass for mobile devices and semiconductor-related products. The top line beat our estimate of $478.1 million. Net income was $63 million, up from $33 million reported in the prior-year quarter.
Environmental Technologies contributed $431 million in net sales, down from $457 million in the year-ago quarter. The downturn is primarily attributed to lower sales of Class 8 trucks in North America. Net sales fell short of our revenue estimate of $460.1 million.
Revenues from the Life Sciences segment were $249 million compared with the year-earlier quarter’s figure of $231 million, up 8% year over year. Segment net income was $17 million, up 55% year over year.
Hemlock and Emerging Growth Businesses reported a 21% decline in net sales year over year to $296 million. Lower pricing for solar-grade polysilicon hindered revenues in this segment. The company reported a net loss of $23 million against a net income of $26 million in the year-ago quarter.
Other Details
Quarterly gross profit decreased to $949 million from $1.01 billion, with respective margins of 29.2% and 31.2%. Operating income was $186 million, down from $279 million in the prior-year quarter. Core gross margin was 37.9%, up from 36.2% in the year-ago quarter, owing to various productivity and pricing improvement actions across business operations.
Cash Flow & Liquidity
During the June quarter, Corning generated $521 million of net cash from operations compared to a cash flow of $619 million in the year-earlier quarter. As of Jun 30, 2024, the company had $1.41 billion in cash in cash and cash equivalents with $6.9 billion of long-term debt.
Outlook
For the third quarter of 2024, core sales are estimated at $3.7 billion. Core EPS is projected to be in the range of 50-54 cents. The growing adoption of optical connectivity products for generative AI applications is expected to be a key growth driver in the forthcoming quarter. A slowdown in the North American Class 8 truck market is a headwind.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Corning has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Corning (GLW) Up 5.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Corning (GLW - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Corning due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Corning Surpasses Q2 Earnings Estimate on Higher Revenues
Corning Incorporated reported strong second-quarter 2024 results, wherein both the top line and bottom line surpassed the respective Zacks Consensus Estimate. The advanced glass substrates producer witnessed a revenue expansion year over year, driven by healthy demand in the Optical Communications, Display Technologies and Specialty Materials segments. The growing adoption of new optical connectivity products for generative AI is a tailwind.
Net Income
On a GAAP basis, the company reported a net income of $104 million or 12 cents per share compared with $281 million or 33 cents per share in the year-ago quarter. Higher cost of sales and increase in operating expenses impeded the net income during the quarter.
Core earnings were $407 million or 47 cents per share, up from $388 million or 45 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a penny.
Revenues
Net sales, on a GAAP basis, was $3.25 billion, marginally up from $3.24 billion reported in the year-ago quarter. Solid traction in several verticals boosted net sales. Core sales were up 4% to $3.6 billion. The top line beat the consensus estimate of $3.49 billion.
Segment Results
Optical Communications generated $1.11 billion in revenues, up 4% from $1.07 billion in the year-ago quarter. The top line beat our estimate of $950.8 million. Net income from this segment improved to $143 million from $140 million reported in the year-ago quarter. Solid demand for new optical connectivity products for generative AI applications propelled net sales in the Enterprise vertical of this segment.
Display Technologies registered $1.01 billion in revenues, up 9% year over year. Net sales beat our revenue estimate of $930.3 million. The segment’s net income was $258 million compared with the prior-year quarter’s figure of $208 million. Higher volume and the company’s strategy of price hikes supported the top line.
Net sales from Specialty Materials stood at $501 million, up 18% year over year, backed by solid demand for premium glass for mobile devices and semiconductor-related products. The top line beat our estimate of $478.1 million. Net income was $63 million, up from $33 million reported in the prior-year quarter.
Environmental Technologies contributed $431 million in net sales, down from $457 million in the year-ago quarter. The downturn is primarily attributed to lower sales of Class 8 trucks in North America. Net sales fell short of our revenue estimate of $460.1 million.
Revenues from the Life Sciences segment were $249 million compared with the year-earlier quarter’s figure of $231 million, up 8% year over year. Segment net income was $17 million, up 55% year over year.
Hemlock and Emerging Growth Businesses reported a 21% decline in net sales year over year to $296 million. Lower pricing for solar-grade polysilicon hindered revenues in this segment. The company reported a net loss of $23 million against a net income of $26 million in the year-ago quarter.
Other Details
Quarterly gross profit decreased to $949 million from $1.01 billion, with respective margins of 29.2% and 31.2%. Operating income was $186 million, down from $279 million in the prior-year quarter. Core gross margin was 37.9%, up from 36.2% in the year-ago quarter, owing to various productivity and pricing improvement actions across business operations.
Cash Flow & Liquidity
During the June quarter, Corning generated $521 million of net cash from operations compared to a cash flow of $619 million in the year-earlier quarter. As of Jun 30, 2024, the company had $1.41 billion in cash in cash and cash equivalents with $6.9 billion of long-term debt.
Outlook
For the third quarter of 2024, core sales are estimated at $3.7 billion. Core EPS is projected to be in the range of 50-54 cents. The growing adoption of optical connectivity products for generative AI applications is expected to be a key growth driver in the forthcoming quarter. A slowdown in the North American Class 8 truck market is a headwind.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Corning has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.