Corning Earnings: Profit and Revenue Dip Lower, Shares Drop 8%
S&P 500 (NYSE:SPY) component Corning Inc. (NYSE:GLW) reported its results for the third quarter. Corning provides glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.
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Corning Inc. Earnings Cheat Sheet
Results: Net income for the communications components fell to $521 million (35 cents per share) vs. $811 million (51 cents per share) a year earlier. This is a decline of 35.8% from the year-earlier quarter.
Revenue: Fell 1.7% to $2.04 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Corning Inc. reported adjusted net income of 34 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. Analysts were expecting revenue of $2.02 billion.
Quoting Management: “We are making progress on our goal to improve Corning’s overall profitability. We had our strongest quarterly sales to date for Corning Gorilla Glass. Our Display Technologies segment continued to stabilize its earnings with another quarter of moderate LCD glass price declines. However, weakening global economic conditions worked against our sales results in Telecommunications and Environmental Technologies.” Weeks referenced Corning’s entry into new supply agreements with industry-leading LCD display manufacturers this past quarter. “These new customer agreements will assist us in maintaining Corning’s market position at specified levels and contain mechanisms that establish a relationship between Corning’s glass price and the market’s glass price. We believe these new agreements will allow us to manage our capacity more efficiently and enable us to continue improving our cost position,” he said.
The company has now seen net income fall in each of the last four quarters. In the second quarter, net income fell 38.8% while the figure fell 38.2% in the first quarter and 53% in the fourth quarter of the last fiscal year.
Revenue has fallen for the past three quarters. In the second quarter, revenue declined 4.8% to $1.91 billion while the figure fell 0.2% in the first quarter from the year earlier.
The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 31 cents versus a mean estimate of net income of 32 cents per share.
Looking Forward: Expectations for the company’s next-quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at 33 cents per share, up from 33 cents. For the fiscal year, the average estimate has moved down from $1.32 a share to $1.27 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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