For the quarter ended June 2024, Corning (GLW) reported revenue of $3.6 billion, up 3.5% over the same period last year. EPS came in at $0.47, compared to $0.45 in the year-ago quarter.The reported revenue represents a surprise of +3.21% over the Zacks Consensus Estimate of $3.49 billion. With the consensus EPS estimate being $0.46, the EPS surprise was +2.17%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations ...

CORNING | --- | --- | |--------------------------------------------------|-------| | | | | | | | Second-Quarter 2024 Investor Call | | | | | | Corning Reports Second-Quarter Financial Results | | | July 30, 2024 | | | | | 1 | --- ...

Financial Data and Key Metrics Changes - The company reported second quarter sales of $3.6 billion, an 11% sequential increase, returning to year-over-year growth [22][26] - EPS grew 24% sequentially to $0.47, exceeding previous guidance [11][22] - Gross margin improved by 110 basis points sequentially and 170 basis points year-over-year, reaching 37.9% [21][22] - Operating margin expanded by 190 basis points compared to the first quarter [11][22] Business Line Data and Key Metrics Changes - **Optical Communications**: Sales reached $1.1 billion, up 20% sequentially and 4% year-over-year, driven by a 42% increase in enterprise network sales due to AI-related connectivity solutions [22][23] - **Display Technologies**: Sales were $1 billion, up 16% sequentially and 9% year-over-year, with net income increasing by 28% sequentially [22][24] - **Specialty Materials**: Sales increased by 18% year-over-year to $501 million, with net income up 91% [25] - **Environmental Technologies**: Sales decreased by 6% year-over-year to $431 million, reflecting a down cycle in the Class 8 truck market [25] - **Life Sciences**: Sales grew by 8% year-over-year to $249 million, with net income up 55% [25] Market Data and Key Metrics Changes - The enterprise business in Optical Communications is expected to grow at a 25% compound annual growth rate from 2023 to 2027, driven by generative AI adoption [19] - The carrier business is beginning to recover as customers start ordering closer to current deployment levels [19][22] Company Strategy and Development Direction - The company is focused on its Springboard plan, aiming to add over $3 billion in annualized sales within the next three years [9][10] - The Springboard plan is expected to leverage cyclical and secular trends to drive demand for the company's capabilities [10][21] - The company is also refreshing its Board of Directors to align with the Springboard plan [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities presented by generative AI and the company's ability to meet increasing bandwidth demands [6][11] - The company anticipates continued strong performance in the third quarter, with sales expected to reach approximately $3.7 billion [26] - Management highlighted the importance of maintaining a strong balance sheet and returning cash to shareholders through share buybacks [27][28] Other Important Information - The company has initiated share buybacks in the second quarter and plans to continue in the third quarter [28][29] - The company expects to generate strong free cash flow, with capital expenditures for 2024 projected at $1.2 billion [27] Q&A Session Summary Question: Can you provide more details on the customers demanding Gen AI products and the visibility for sustaining this momentum? - Management indicated high visibility for growth due to established relationships and ongoing projects with customers, leading to new customer acquisitions [32][33] Question: How is the $8 billion Springboard opportunity split between carrier and enterprise? - The majority of the opportunity is expected to come from the enterprise segment, driven by changes in compute requirements due to generative AI [38] Question: What are the expectations for gross margin trends in the coming quarters? - Management expects gross margins to continue improving as sales increase, supported by existing capacity and technical capabilities [53] Question: What is the outlook for the carrier business and inventory levels? - The carrier business is showing signs of recovery, with order rates approaching deployment levels, indicating a positive trajectory [66][72] Question: How does the enterprise segment compare to the carrier segment in terms of margins? - The enterprise segment generally has higher margins than the carrier segment due to the customized solutions offered [68]

Corning (GLW) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.17%. A quarter ago, it was expected that this specialty glass maker would post earnings of $0.36 per share when it actually produced earnings of $0.38, delivering a surprise of 5.56%.Over the last four quarters, the compa ...

FOR RELEASE – July 30, 2024 Exhibit 99 Corning Reports Strong Second-Quarter 2024 Financial Results, Exceeding April Guidance and Marking Return to Year-over-Year Sales Growth Outperformance was driven primarily by the strong adoption of new optical connectivity products for generative AI Management expects core sales to grow to ~$3.7 billion in the third quarter, with core EPS growing faster than sales and in the range of $0.50 to $0.54 Corning and Lumen Technologies reach an agreement to reserve 10% of Co ...

The upcoming report from Corning (GLW) is expected to reveal quarterly earnings of $0.46 per share, indicating an increase of 2.2% compared to the year-ago period. Analysts forecast revenues of $3.49 billion, representing an increase of 0.3% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 2.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe ...

Core Insights - Corning Incorporated (GLW) is expected to report its second-quarter 2024 results on July 30, with a trailing four-quarter earnings surprise of 0.22% on average and a 5.56% surprise in the last quarter [1] - The company is likely to experience year-over-year revenue growth due to strong demand across various sectors, including mobile consumer electronics, generative AI applications, and automotive [1] - Corning's focus on enhancing profitability and cash flow, along with opportunities in emerging markets for automotive glass solutions and pharmaceutical packaging, is seen as a positive factor [1] Factors at Play - Corning has expanded its cover glass portfolio with the introduction of Corning Gorilla Glass 7i, which offers improved drop protection and scratch resistance, targeting the mid-range smartphone market [2] - The deployment of Corning's Ascent Fixed Bed Bioreactor systems by the National Institute for Bioprocessing Research and Training in Ireland is expected to positively impact upcoming results [2] Revenue Estimates - The optical communication segment is estimated to generate $950.8 million in revenue, reflecting a 10.8% year-over-year decline but indicating market recovery with modest sequential growth [3] - The Display Technologies segment is projected to achieve $930.3 million in revenue, showing marginal growth from the previous year's $928 million [3] - The Specialty Materials segment is expected to reach $478.1 million, indicating a strong 13% year-over-year growth, while Environmental Technologies revenues are projected at $460.1 million [3] Consensus Estimates - The Zacks Consensus Estimate for Corning's revenues in the June quarter is $3.49 billion, showing modest growth from $3.48 billion in the same quarter last year [4] - The consensus estimate for adjusted earnings per share is 46 cents, an increase from 45 cents in the year-ago quarter [4] Earnings Predictions - Corning is predicted to likely beat earnings expectations, supported by a positive Earnings ESP of +1.59% and a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - The market anticipates Corning (GLW) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending June 2024, with the earnings report expected on July 30, 2024 [1] Earnings Expectations - Corning is projected to post quarterly earnings of $0.46 per share, reflecting a year-over-year change of +2.2% [2] - Revenues are expected to reach $3.49 billion, which is an increase of 0.3% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised 2.69% higher in the last 30 days, indicating a positive reassessment by analysts [2] - The Most Accurate Estimate for Corning is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.59% [5] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [4] - Corning currently holds a Zacks Rank of 1, suggesting a high likelihood of beating the consensus EPS estimate [6] Historical Performance - In the last reported quarter, Corning exceeded the expected earnings of $0.36 per share by delivering $0.38, resulting in a surprise of +5.56% [7] - Over the past four quarters, Corning has beaten consensus EPS estimates only once [7] Conclusion - Corning is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [8]

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Corning (GLW) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Corning is one of 617 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of t ...

Core Insights - The article highlights the expanding opportunities in the artificial intelligence (AI) sector, particularly focusing on Corning as a key player in AI infrastructure, which is often overlooked compared to larger companies like Nvidia, Microsoft, and Amazon [1][2]. Group 1: Corning's Role in AI - Corning, with a market capitalization of $36.8 billion, manufactures components essential for consumer electronics and data centers, positioning itself as a significant contributor to the AI boom [1][2]. - The company specializes in glass components, crucial for fiberoptic cables that enable fast data transmission, which is vital for AI development requiring hyperscale infrastructure [2][3]. - Corning's new RocketRibbon cable offers a 60% smaller diameter than competitors while maintaining a high fiber count, providing substantial space savings for data center operators [3]. Group 2: Financial Performance and Forecast - Corning reported $3.2 billion in revenue for Q1 2024, a 3% decline year-over-year, with its optical communications segment contributing $930 million, down 17% [4]. - The company has revised its Q2 revenue forecast from $3.4 billion to $3.6 billion, driven by increased sales of optical connectivity solutions for AI [5]. - Corning's 'Springboard' framework aims to add $3 billion in annual revenue in the coming years, representing a 22% growth on its 2023 revenue of $13.6 billion [4]. Group 3: Investment Potential - Corning's stock is considered relatively cheap, with a P/E ratio of 25.8, which is a 20% discount compared to the Nasdaq-100 index's P/E ratio of 32.3 [6]. - The company declared a second-quarter dividend of $0.28 per share, yielding 2.6%, which is higher than the dividends offered by Nvidia and Microsoft [7]. - Corning presents a compelling opportunity for investors looking to diversify their AI holdings or enter the AI space for the first time [8].