Corning Inc. Earnings Cheat Sheet: Margins Rise with Revenues, Net Income Rises

S&P 500 (NYSE:SPY) component Corning Inc. (NYSE:GLW) reported net income above Wall Street’s expectations 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for Corning Inc. rose to $811 million (51 cents per share) vs. $785 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 3.3% from the year earlier quarter.

Revenue: Rose 29.5% to $2.08 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 42 cents per share. It beat the average revenue estimate of $2.02 billion.

Quoting Management: “We had a very respectable quarter with all of our segments showing double-digit percentage sales growth over last year,” said Wendell P. Weeks, chairman, chief executive officer and president. “Our results were in line with the revised forecast we provided in September, when we first explained that LCD glass volume would be lower than expected as a result of a slowing in panel maker utilization rates and some share loss at SCP.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 17.1% to $2 billion in the second quarter. The figure rose 23.8% in the first quarter from the year earlier and climbed 15.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

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

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 17.3% while the figure dropped in the first quarter.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 1.9 percentage points to 47.1% from the quarter earlier quarter. In the first quarter, the figure rose four percentage points to 44.3% 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 fourth quarter has moved down from 55 cents a share to 42 cents over the last ninety days. The average estimate for the fiscal year is $1.79 per share, down from $2.03 ninety days ago.

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

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(Source: Xignite Financials)