Corning Q3 Earnings Beat Expectations with 8% Core Sales Growth, Optical Communications Segment Shines

Corning Inc GLW shares are trading higher after the company reported third-quarter 2024 results.

Core sales growth of 8% year-on-year to $3.73 billion, beating the analyst consensus estimate of $3.72 billion. 

The Apple glass supplier’s core EPS of 54 cents beat the analyst consensus estimate of 52 cents.

• Display Technologies’ sales grew by 4% year-over-year to $1.015 billion. 
• Optical Communications sales increased by 36% year-over-year to $1.246 billion — record sales in the Enterprise portion of the business (up 55%).
• Specialty Materials sales fell 3% year over year to $548 million in the quarter.
• Life Sciences sales increased by 6% year-over-year to $244 million
• Environmental Technologies sales declined by 15% year-over-year to $382 million.
• Hemlock and Emerging Growth Businesses sales declined 9% year over year to $298 million in the quarter.
• The core gross margin increased by 220 bps to 39.2%. The adjusted free cash flow was $553 million in the quarter.

Outlook: Corning expects fourth-quarter core sales of $3.75 billion (consensus $3.67 billion) and core EPS of $0.53-$0.57 (consensus $0.52).

Chair and CEO Wendell P. Weeks said, “In Display Technologies, we implemented price increases and expect to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%. Additionally, in Optical Communications, our new products for generative AI are seeing strong demand and driving record year-over-year growth in our Enterprise business.”

Yesterday, Corning inked a multi-year agreement with AT&T, which is valued at over $1 billion.

In September, Corning provided significant updates to its "Springboard" plan of adding more than $3 billion in annualized sales and shared its strategy to achieve a 20% operating margin by the end of 2026.

Investors can gain exposure to GLW via ProShares Smart Materials ETF TINT and Professionally Managed Portfolios Otter Creek Focus Strategy ETF OCFS.

Price Action: GLW shares are up 8.24% at $50.70 premarket at the last check Tuesday.

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