Corning Incorporated (GLW) 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 IncomeOn a GAAP basis, the company reported a net income ...

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 ...

Second-Quarter 2024 Performance - Corning reported Q2 2024 core sales of $3.60 billion, a 4% increase year-over-year[6] - The company's Q2 2024 core EPS was $0.47, also a 4% increase year-over-year[6] - Q2 2024 gross margin was 38%, a 170 bps increase year-over-year[6] - Adjusted free cash flow for Q2 2024 was $353 million[6] Segment Performance - Optical Communications Q2 sales were $1.1 billion, up 4% year-over-year, with Enterprise Network sales up 42% driven by AI-related connectivity solutions[25] - Display Technologies Q2 sales were $1.0 billion, up 9% year-over-year, with net income up 24%[26] - Specialty Materials Q2 sales were $501 million, up 18% year-over-year, and net income up 91%[28] - Environmental Technologies Q2 sales were $431 million, down 6% year-over-year, and net income down 9%[29] - Life Sciences Q2 sales were $249 million, up 8% year-over-year, and net income up 55%[30] - Hemlock and Emerging Growth Businesses Q2 sales were $296 million, down 21% year-over-year, with a net loss of $23 million[31] Forward Outlook - Q3 2024 sales are expected to be approximately $3.7 billion[32] - Q3 2024 EPS is projected to be between $0.50 and $0.54[32] - The company anticipates $1.2 billion in capital expenditures for full-year 2024[33] Springboard Plan - The "Springboard" plan targets a $3 billion+ sales opportunity over the next 3 years[10, 15] - The Enterprise business is expected to grow at a 25% CAGR from 2023 to 2027[23]

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]

Company Performance - Corning reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.45 per share a year ago, representing an earnings surprise of 2.17% [1] - The company posted revenues of $3.6 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.21%, compared to year-ago revenues of $3.48 billion [1] - Over the last four quarters, Corning has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.54 on revenues of $3.7 billion, and for the current fiscal year, it is $1.94 on revenues of $14.23 billion [4] - The estimate revisions trend for Corning is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Communication - Components industry, to which Corning belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Another company in the same industry, Viav Solutions, is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year decline of 30%, with revenues anticipated to be $251.83 million, down 4.5% from the previous year [5][6]

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]

Group 1 - Corning (GLW) has a year-to-date return of approximately 49.4%, outperforming the average gain of 31.7% in the Computer and Technology sector [2] - Corning currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [1] - The Zacks Consensus Estimate for Corning's full-year earnings has increased by 3.5% over the past three months, reflecting improving analyst sentiment [2] Group 2 - Corning is part of the Communication - Components industry, which has seen an average gain of 48% year-to-date, indicating strong performance within its specific industry [3] - In comparison, American Superconductor (AMSC), another outperforming stock in the Computer and Technology sector, has a year-to-date return of 146.2% and a Zacks Rank of 1 (Strong Buy) [2][3] - The Electronics - Miscellaneous Components industry, to which AMSC belongs, is currently ranked 180 and has only gained 9.2% year-to-date, highlighting the relative strength of Corning's industry [3]