Corning Surpasses Q1 Consensus Backed By Strength Across Optical, Display Businesses

Corning Inc GLW reported first-quarter FY22 core sales growth of 15% year-on-year to $3.7 billion, above the consensus of $3.57 billion.
Display Technologies sales grew 11% Y/Y to $959 million, driven by a favorable glass pricing environment.
Optical Communications sales rose 28% Y/Y to $1.2 billion as 5G, broadband, and cloud computing continue to drive growth.
Specialty Materials sales grew 9% Y/Y to $493 million. Life Sciences sales rose 3% Y/Y to $310 million.
Environmental Technologies sales declined 7% Y/Y to $409 million, reflecting lower production levels in the automotive industry due to the semiconductor chip shortage.
Margin: The core gross margin remained flattish Q/Q at 36.6%.
Core EPS of $0.54 beat the consensus of $0.50.
Corning generated $171 million in free cash flow.
Chair and CEO Wendell P. Weeks said, "We are off to an outstanding start in 2022, driven by broad-based strength across our businesses – led by 28% year-over-year sales growth in Optical Communications and continued favorable pricing in Display."
"Looking ahead, demand for Corning content has never been greater. We expect strong top- and bottom-line growth this year, as we advance innovations and remain focused on pricing, capital efficiency, and cash generation," Weeks continued.
Outlook: Corning sees Q2 FY22 core sales of $3.7 billion - $3.9 billion, above the consensus of $3.68 billion. It sees core EPS of $0.54 - $0.59 versus the consensus of $0.55.
Corning sees FY22 sales exceeding $15 billion (prior view: sales of ~$15 billion) versus the consensus of $15.03 billion.
Price Action: GLW shares traded higher by 3.85% at $35.75 on the last check Tuesday.

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