Rising costs hurt S&P 500 (NYSE:SPY) component Corning Inc. (NYSE:GLW) in the second quarter as profit dropped from a year earlier. Corning Inc. provides high-performance glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.
Corning Earnings Cheat Sheet for the Second Quarter
Results: Net income for the diversified electronics company fell to $755 million (47 cents per share) vs. $913 million (58 cents per share) a year earlier. This is a decline of 17.3% from the year earlier quarter.
Revenue: Rose 17.1% to $2 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: GLW reported adjusted net income of 48 cents per share. By that measure, the company beat the mean estimate of 47 cents per share. Analysts were expecting revenue of $1.97 billion.
Quoting Management: “Second-quarter results were in line with our expectations,” Wendell P. Weeks, chairman, chief executive officer and president, said. He added that the results demonstrate the company is moving toward its goal of becoming a more balanced global company by pursuing growth opportunities. “Corning Gorilla Glass is the cover glass of choice for next-generation mobile devices; sales continued growing across our major telecommunications product lines; and global demand for our Environmental Technologies emissions products remained strong,” he remarked.
Gross margin shrank four percentage points to 44.3%. The contraction appeared to be driven by increased costs, which rose 26.1% from the year earlier quarter while revenue rose 17.1%.
Revenue has risen the past four quarters. Revenue increased 23.8% to $1.92 billion in the first quarter. The figure rose 15.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.3% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 8.3% from the year earlier quarter.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 47 cents versus a mean estimate of net income of 44 cents per share.
Competitors to Watch: Owens Corning (NYSE:OC), PPG Industries, Inc. (NYSE:PPG), Research Frontiers, Inc. (NASDAQ:REFR), Newport Corporation (NASDAQ:NEWP), 3M Company (NYSE:MMM), II-VI, Inc. (NASDAQ:IIVI).
(Source: Xignite Financials)