Corning ( NYSE: GLW ) stock fell 5.2% on Tuesday after the company issued disappointing guidance in its Q4 earnings report as it COVID disruptions in China dented consumer sentiment and delayed recovery in the display industry.
Q1 core sales are expected to be $3.2B-$3.4B (vs. $3.57B consensus), while core EPS is projected to be $0.35-$0.42 (vs. $0.46 consensus).
The outlook reflects impacted consumer sentiment and labor availability in some industries in China, delay in display industry recovery by at least one quarter, and lower OEM production levels in environmental segment.
Corning ( GLW ) expects Q1 sales to decline more than normal seasonality, but margins are expected to grow sequentially due to recent initiatives.
The firm implemented actions such as raising prices again in optical communications and life sciences, adjusting productivity ratios closer to historical metrics, and reducing inventory by $115M in Q4. It expects to start seeing the benefits of these steps in Q1, while sales are projected to grow sequentially in Q2.
Corning ( GLW ) reported Q4 adj. EPS of $0.47 vs. $0.54 in Q4 2021. Revenue slipped 2.2% Y/Y to $3.63B. Optical communications sales fell 1% to $1.2B, reflecting the slower pacing of customer projects. Specialty materials sales were down 3% at $505M, while life sciences sales dropped 7% to $294M, hurt by lower demand for COVID-related products.
Earlier, Goldman Sachs listed stocks poised to best benefit from China's reopening .
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Corning stock falls 5% on disappointing guidance amid weakness in China