Corning Inc. Earnings: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component Corning Inc. (NYSE:GLW) reported its results for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the diversified electronics company fell to $491 million (31 cents per share) vs. $1.04 billion (66 cents per share) a year earlier. This is a decline of 53% from the year earlier quarter.

Revenue: Rose 6.9% to $1.89 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GLW reported adjusted net income of 33 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. It beat the average revenue estimate of $1.84 billion.

Quoting Management: “This past year was a very successful one for Corning,” Wendell P. Weeks, chairman, chief executive officer, and president, said. “We had the strongest annual sales performance in our 161-year history. We set new records for gross margin and operating income (before special items). The company generated positive free cash flow for the eighth consecutive year. We have a healthy balance sheet, and we raised our shareholder dividend and initiated a share repurchase program.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the third quarter, by one cent in the second quarter, and by 3 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 29.5% to $2.08 billion in the third quarter. The figure rose 17.1% in the second quarter from the year earlier and climbed 23.8% in the first quarter from the year-ago quarter.

Net income has dropped 6.8% year over year on average across the last five quarters. Performance was hurt by a 53% decline in the most recent quarter from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 43 cents a share to 35 cents over the last ninety days. The average estimate for the fiscal year is now $1.76 per share, down from $1.83 sixty days ago.

Competitors to Watch: PPG Industries, Inc. (NYSE:PPG), Research Frontiers, Inc. (NASDAQ:REFR), Newport Corporation (NASDAQ:NEWP), 3M Company (NYSE:MMM) and II-VI, Inc. (NASDAQ:IIVI).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com