Why Is Corning (GLW) Down 2% Since Last Earnings Report?

Core Insights - Corning reported solid fourth-quarter 2024 results, with adjusted earnings and revenues surpassing estimates, driven by strong sales across most segments except Environmental Technologies [2][3] Financial Performance - The company achieved a net income of $310 million or 36 cents per share, a significant improvement from a net loss of $40 million or 5 cents per share in the same quarter last year [3] - Core earnings for the quarter were $497 million or 57 cents per share, up from $339 million or 39 cents per share year-over-year, beating the Zacks Consensus Estimate by a penny [3] - For the full year 2024, net income was reported at $506 million or 58 cents per share, compared to $581 million or 68 cents per share in 2023 [4] Revenue Growth - Net sales on a GAAP basis reached $3.5 billion, up from $3 billion in the year-ago quarter, with core sales increasing by 4% to $3.87 billion, exceeding the consensus estimate of $3.77 billion [5] - The Optical Communications segment generated $1.37 billion in revenues, a 51% year-over-year increase, driven by demand for new optical connectivity products for GenAI applications [6] - Display Technologies reported revenues of $971 million, up 12% year-over-year, while Specialty Materials saw revenues of $515 million, a 9% increase [7][8] - Environmental Technologies experienced a decline in net sales to $397 million from $429 million, primarily due to soft global heavy-duty diesel markets [9] Profitability Metrics - Quarterly gross profit increased to $1.2 billion from $911 million, with gross margins improving to 34.2% from 30.4% [11] - Operating income rose to $393 million from $78 million in the prior-year quarter, with core gross margin at 38.6%, up from 36.9% [11] Cash Flow and Liquidity - Corning generated $623 million of net cash from operations during the December quarter, bringing total cash flow for 2024 to $1.9 billion [12] - As of December 31, 2024, the company had $1.77 billion in cash and cash equivalents, with long-term debt at $6.88 billion [12] Future Outlook - For the first quarter of 2025, core sales are estimated at $3.6 billion, with core EPS projected in the range of 48-52 cents [13] - There has been an upward trend in estimates revisions, indicating positive sentiment among investors [14][16]