- Corning ( NYSE: GLW ) trades in red in premarket trade after its Q3 estimates are seen below consensus estimates while FY estimates are also pegged below estimates.
- Core sales of $3.76B (+7% Y/Y) were led by 22% Y/Y growth and 10% Q/Q increase in Optical Communications to $1.3B.
- Display Technologies sales were down 6% Y/Y to $878M led by declining volume in line with the market and lower panel maker utilization.
- In Specialty Materials, sales of $485M were in-line with a strong Q2; Environmental Technologies sales dropped 13% to $356M; Life Sciences sales stood at $312M, consistent Y/Y and up slightly sequentially; Hemlock and Emerging Growth Businesses sales surged 45% Y/Y to $418M.
- The company also delivered $440M of free cash flow in the quarter and improved profitability sequentially; total first-half free cash flow stood at $611M.
- "Although three of our significant demand drivers – panel maker utilization, automotive production, and smartphone sales – were down, we achieved high-single digit growth through "More Corning" content opportunities and by capitalizing on secular trends in optical and solar," chairman & CEO Wendell P. Weeks commented.
- Core gross margin and core operating margin expanded 90 basis points and 120 basis points, respectively, from Q1 of 2022 led by benefits of earlier announced companywide pricing actions.
- Of the 14 Wall Street Analysts covering the stock, 6 have assigned a Strong Buy while 5 rate it a Hold.
- SA Contributor Gen Alpha recently wrote, "Corning: A Sleeper Gem To Own For The Next 10+ Years"
For further details see:
Corning Q2 highlighted by Optical Communications sales growth, Q3 outlook below consensus