Corning Incorporated (GLW) reported healthy first-quarter 2024 results, wherein both the top line and bottom line surpassed the respective Zacks Consensus Estimate. However, the company witnessed a revenue decline year over year due to demand softness in the Optical Communications and Life Sciences vertical. Signs of recovery in several end markets, healthy traction in Environmental Technologies, Specialty Materials and Display Technologies partially supported the top line. Pricing and productivity improvem ...

First-Quarter 2024 Investor Call Corning Reports First-Quarter Financial Results April 30, 2024 1 Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or informationand contain words such as “will,” “believe,” “anticipate,”“expect,” “intend,” “plan,” “seek,” “see,” “would,”“target,” “estimate,” “forecast” or similar expressions areforward-looking statements.These forward-looking statements are made pursuantto ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) The company reported Q1 2024 results at the high end of guidance, with improving margins and a positive outlook for sequential growth [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management expects Q1 to be the year's low point, reaffirming plans for significant sales growth and guiding for a stronger Q2 - Management expects the first quarter to be the **low point for the year**, with improving market conditions supporting sales growth throughout 2024[1](index=1&type=chunk)[2](index=2&type=chunk) - The company is executing plans to add **more than $3 billion in annualized sales** within the next three years, leveraging existing capacity to drive incremental profit and cash flow[2](index=2&type=chunk) - Actions to increase price and improve productivity resulted in a **160 basis point year-over-year increase in core gross margin** and a **more than $300 million improvement in adjusted free cash flow** versus Q1 2023[4](index=4&type=chunk) Second-Quarter 2024 Outlook | Metric | Outlook | | :--- | :--- | | Core Sales | Approx. $3.4 billion | | Core EPS | $0.42 to $0.46 | [First-Quarter 2024 Financial Highlights](index=1&type=section&id=First-Quarter%202024%20Financial%20Highlights) The company reported a year-over-year decline in Q1 sales but achieved improved gross margins and a significant improvement in adjusted free cash flow Q1 2024 Key Financial Metrics | Metric | Value | Year-over-Year Change | | :--- | :--- | :--- | | GAAP Sales | $2.98 billion | -6% | | Core Sales | $3.26 billion | -3% | | GAAP Gross Margin | +180 bps | N/A | | Core Gross Margin | +160 bps | N/A | | GAAP EPS | $0.24 | N/A | | Core EPS | $0.38 | N/A | | Adjusted Free Cash Flow | $(62) million | Improved vs. Q1 2023 | [Strategic Initiatives and Market Developments](index=2&type=section&id=Strategic%20Initiatives%20and%20Market%20Developments) The company is capitalizing on new EPA standards, innovating in Optical Communications, and anticipating growth from the federal BEAD program - New U.S. EPA emissions standards are expected to drive the adoption of gasoline particulate filters (GPFs) in all U.S. gasoline vehicles from 2027, creating a **significant content opportunity** for Corning[9](index=9&type=chunk) - Innovations in Optical Communications include the **RocketRibbon® cable** with a 60% smaller diameter and **Multifiber Pushlok™ Technology**, designed to enable faster and denser fiber network deployments for carriers and data centers[9](index=9&type=chunk) - The company expects the federal **BEAD program** to begin funding approvals late in 2024, with spending in 2025, which will significantly add to Corning's addressable market for high-speed internet infrastructure[9](index=9&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a detailed breakdown of consolidated financial results and an analysis of performance across all business segments [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Q1 2024 saw decreased GAAP and Core sales, but GAAP net income increased while Core net income declined year-over-year Q1 2024 Consolidated Results (GAAP) | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,975M | $3,178M | -6% | | Net Income | $209M | $176M | +19% | | Diluted EPS | $0.24 | $0.20 | +20% | Q1 2024 Consolidated Core Results (Non-GAAP) | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Core Sales | $3,258M | $3,367M | -3% | | Core Net Income | $330M | $350M | -6% | | Core EPS | $0.38 | $0.41 | -7% | [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Segment performance was mixed, with strong growth in Display, Specialty, and Environmental Technologies offset by declines in other segments [Optical Communications](index=2&type=section&id=Optical%20Communications) Q1 sales declined year-over-year due to customer inventory drawdowns, leading to a significant drop in net income - The year-over-year sales decline reflects temporarily lower carrier demand as customers continued to draw down inventory[9](index=9&type=chunk) Optical Communications Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $930M | $1,125M | -17% | | Net Income | $100M | $159M | -37% | [Display Technologies](index=3&type=section&id=Display%20Technologies) Q1 sales and net income grew strongly, driven by higher volume and pricing actions implemented in the second half of 2023 - Growth was driven by **higher volume and pricing actions** taken in the second half of 2023[10](index=10&type=chunk) Display Technologies Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $872M | $763M | +14% | | Net Income | $201M | $160M | +26% | [Specialty Materials](index=3&type=section&id=Specialty%20Materials) Q1 sales and net income increased, fueled by strong demand for premium smartphone cover materials and semiconductor-related products - Growth was driven by continued strong demand for **premium smartphone cover materials** and **semiconductor related products**[11](index=11&type=chunk) Specialty Materials Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $454M | $406M | +12% | | Net Income | $44M | $39M | +13% | [Environmental Technologies](index=3&type=section&id=Environmental%20Technologies) Q1 sales and net income grew significantly, driven by higher adoption of gasoline particulate filters in China and improved operations - Sales growth was driven by increased **gasoline particulate filter adoption in China**, which offset a decline in heavy-duty diesel in North America[12](index=12&type=chunk) Environmental Technologies Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $455M | $431M | +6% | | Net Income | $105M | $82M | +28% | [Life Sciences](index=3&type=section&id=Life%20Sciences) Q1 sales declined as customers worked through inventory, but net income grew substantially due to improved productivity - Sales were down as customers in North America and Europe continue to draw down their inventory; however, **net income grew due to improved productivity**[13](index=13&type=chunk) Life Sciences Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $236M | $256M | -8% | | Net Income | $13M | $9M | +44% | [Hemlock and Emerging Growth Businesses](index=3&type=section&id=Hemlock%20and%20Emerging%20Growth%20Businesses) Q1 sales fell due to lower solar polysilicon pricing and reduced pharmaceutical sales after completing COVID-related commitments - The sales decline primarily reflects **lower pricing for solar-grade polysilicon** and lower sales in Corning Pharmaceutical Technologies from the completion of COVID-related product commitments[15](index=15&type=chunk) Hemlock and Emerging Growth Businesses Q1 2024 Results | Metric | Q1 2024 | Q1 2023 | Y/Y Change | | :--- | :--- | :--- | :--- | | Net Sales | $311M | $386M | -19% | | Net (Loss) Income | $(10)M | $16M | * | [Consolidated Financial Statements (GAAP)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) This section presents the official GAAP-based consolidated statements of income, balance sheets, and cash flows for the period [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The company reported Q1 net sales of $2.98 billion and net income of $209 million, an increase from the prior year Consolidated Statements of Income (Three months ended March 31) | Line Item (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net sales | $2,975 | $3,178 | | Gross margin | $993 | $1,003 | | Operating income | $254 | $297 | | Income before income taxes | $296 | $228 | | Net income attributable to Corning Inc. | $209 | $176 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $27.62 billion, with total equity at $11.56 billion and cash at $1.37 billion Consolidated Balance Sheet Highlights (in millions) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,365 | $1,779 | | Total current assets | $6,971 | $7,212 | | Total Assets | $27,618 | $28,500 | | Total current liabilities | $4,175 | $4,319 | | Total liabilities | $16,059 | $16,632 | | Total equity | $11,559 | $11,868 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $96 million in Q1 2024, a significant improvement from a cash use in the prior year Consolidated Statements of Cash Flows (Three months ended March 31, in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $96 | $(49) | | Net cash used in investing activities | $(184) | $(228) | | Net cash used in financing activities | $(308) | $(248) | | Net decrease in cash and cash equivalents | $(414) | $(525) | [Earnings Per Share (EPS) Calculation](index=9&type=section&id=Earnings%20Per%20Share%20(EPS)%20Calculation) For Q1 2024, GAAP diluted EPS was $0.24, up from $0.20 in the prior year, while Core diluted EPS was $0.38, down from $0.41 GAAP EPS Calculation (Q1 2024 vs Q1 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net income attributable to Corning Inc. (millions) | $209 | $176 | | Weighted-average common shares outstanding - diluted (millions) | 862 | 859 | | **Diluted earnings per common share** | **$0.24** | **$0.20** | Core EPS Calculation (Q1 2024 vs Q1 2023) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Core net income (millions) | $330 | $350 | | Weighted-average common shares outstanding - diluted (millions) | 862 | 859 | | **Core earnings per share** | **$0.38** | **$0.41** | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains the company's use of non-GAAP core performance measures and provides detailed reconciliations to GAAP figures [Explanation of Core Performance Measures](index=10&type=section&id=Explanation%20of%20Core%20Performance%20Measures) Corning uses non-GAAP core measures, excluding certain items and currency impacts, to assess underlying operational performance - Core performance measures are adjusted to exclude specific items that do not reflect the ongoing operating results of the Company, such as the impact of translating Japanese yen-denominated debt, acquisition-related costs, and restructuring charges[34](index=34&type=chunk) - The company uses constant-currency reporting for its segments to exclude the impact of foreign exchange fluctuations, allowing management to analyze underlying business trends and establish operational goals[35](index=35&type=chunk)[36](index=36&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliations show adjustments for items like currency effects and gains on debt to bridge GAAP and core net income and cash flow Reconciliation of GAAP to Core Net Income (Q1 2024, in millions) | Description | Amount | | :--- | :--- | | **As reported – GAAP Net Income** | **$209** | | Constant-currency adjustment | $172 | | Translation gain on Japanese yen-denominated debt | $(62) | | Translated earnings contract gain | $(30) | | Other adjustments (net) | $41 | | **Core performance measures Net Income** | **$330** | Reconciliation of GAAP to Core Gross Margin (Q1 2024, in millions) | Description | Amount | % of Sales | | :--- | :--- | :--- | | **As reported - GAAP Gross Margin** | **$993** | **33.4%** | | Constant-currency adjustment | $227 | N/A | | Restructuring, impairment and other charges | $(20) | N/A | | **Core performance measures Gross Margin** | **$1,200** | **36.8%** | Reconciliation to Adjusted Free Cash Flow (Q1 2024, in millions) | Description | Amount | | :--- | :--- | | Cash flows from operating activities (GAAP) | $96 | | Adjustments | $94 | | **Adjusted cash flows from operating activities** | **$190** | | Less: Capital expenditures | $252 | | **Adjusted free cash flow** | **$(62)** | [Items Adjusted from GAAP Measures](index=14&type=section&id=Items%20Adjusted%20from%20GAAP%20Measures) This section defines specific adjustments used in non-GAAP reconciliations, including constant-currency rates and restructuring charges - Provides definitions for adjustments including: Constant-currency adjustment, Translation of Japanese yen-denominated debt, Translated earnings contracts, Acquisition-related costs, Discrete tax items, Restructuring charges, Litigation matters, Pension mark-to-market adjustments, and Investment gains/losses[49](index=49&type=chunk)[51](index=51&type=chunk) Constant-Currency Rates Used | Currency | Rate | | :--- | :--- | | Japanese yen | ¥107 | | Korean won | ₩1,175 | | Chinese yuan | ¥6.7 | | New Taiwan dollar | NT$31 | | Euro | €.81 | | Mexican peso | MX$20 |

Investors are always looking for stocks that are poised to beat at earnings season and Corning Incorporated (GLW) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Corning is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good i ...

Wall Street analysts forecast that Corning (GLW) will report quarterly earnings of $0.36 per share in its upcoming release, pointing to a year-over-year decline of 12.2%. It is anticipated that revenues will amount to $3.12 billion, exhibiting a decline of 7.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their i ...

Corning Incorporated (GLW) is set to report its first-quarter 2024 results on Apr 30, before the opening bell. It delivered a trailing four-quarter earnings surprise of 0.12% on average. In the last reported quarter, the communication components provider missed the Zacks Consensus Estimate by a penny.The advanced glass substrates producer is likely to witness a top-line contraction year over year, owing to demand softness in several end markets. Supply chain corrections and macroeconomic challenges are head ...

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PM Images/DigitalVision via Getty Images Introduction and thesis Corning Incorporated (NYSE:GLW) is a global technology company specializing in advanced materials and specialty glass. Founded in 1851 and headquartered in Corning, New York, the company operates in five segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. Corning is a compelling business as its expertise is in a niche segment of specialized advanced materials, but has ...

Tech stocks are not known for their top-notch dividend policies. Many companies in this sector are busy inventing tomorrow's technologies, often prioritizing reinvestment over distributing cash profits through dividends.Let me paint a picture for you. There are 2,457 stocks trading on American stock exchanges with a market cap of at least $1 billion, according to Finviz. Of them, 1,504, or 61%, offer some sort of dividend payout.Narrow your view to the tech sector, and you'll find 111 dividend payers out of ...

Corning Incorporated Conference Call Summary Company Overview - **Company**: Corning Incorporated (NYSE: GLW) - **Date**: March 5, 2024 - **Participants**: Edward Schlesinger (CFO), Meta Marshall (Morgan Stanley) Key Industry Insights General Market Conditions - Corning has experienced recessionary demand across most of its portfolio throughout 2023, with expectations that Q1 2024 will mark a bottom for demand recovery [2][3] - The company is observing various signposts across segments to gauge when demand might return, including inventory digestion and deployment rates in Optical Communications and Display segments [3][5] Segment-Specific Insights Optical Communications - Customers have excess inventory, which is expected to be digested by mid-2024, potentially increasing sales even without increased deployments [3][10] - The long-term demand trajectory remains positive due to factors like broadband build-out and cloud computing needs, despite current sales being approximately 30% below trend lines [10][12] Display - Panel maker utilization was depressed in Q4 2023, but an increase is anticipated as the year progresses, indicating potential recovery in demand [5][15] - Price increases have been implemented to maintain profitability, with a focus on achieving a net income ratio of 25-30% [18][52] Life Sciences - Inventory digestion is occurring, particularly in North America and Europe, with expectations for growth as the market normalizes post-COVID [47] - The segment is expected to grow at a low to mid-single-digit rate, with certain subsegments like bioprocessing potentially growing faster [48] Automotive Glass - Corning sees significant opportunities in the automotive sector, with a total addressable market (TAM) of $100 per vehicle driven by trends in emissions control and connectivity [34] - The company has secured $1 billion in multi-year auto glass orders, with sales expected to ramp up as model years progress [36] Specialty Materials - Corning's Gorilla Glass sales have increased despite a decline in smartphone units, indicating strong innovation and market demand [42] - The company is also seeing growth in specialty glass for the semiconductor industry, which is expected to continue as the supply chain expands [43] Financial Performance and Strategy - Corning improved its gross margin by approximately 300 basis points in 2023, with a focus on maintaining profitability and cash flow [8][49] - The company has the capacity to drive an additional $3 billion in sales without significant capital investment, indicating a strong operational leverage point [50] - Capital expenditures for 2024 are expected to be lower than in 2023, with maintenance capital estimated at $1-1.1 billion [50] M&A and Future Outlook - Corning is primarily focused on organic growth but remains open to opportunistic M&A, particularly in the optical and life sciences sectors [67] - The company is cautiously optimistic about the impact of BEAD funds on demand, expecting more significant effects in 2025 than in 2024 [12][14] Additional Considerations - The impact of currency fluctuations, particularly the yen, has been managed through pricing strategies and hedging [24][18] - The company remains the market leader in the display space and is willing to trade market share for profitability [22][18] - Corning is exploring AI opportunities but considers it early days for significant internal applications [56][58] This summary encapsulates the key points discussed during the conference call, highlighting Corning's current market conditions, segment performance, financial strategies, and future outlook.