Corning Incorporated (NYSE:GLW) – Corning Shares Gain On Q4 Beat, Robust Outlook

  • Corning Inc (NYSE: GLW) reported fourth-quarter FY21 core sales growth of 12% year-on-year to $3.71 billion, above the consensus of $3.59 billion.
  • Display Technologies sales grew 12% Y/Y to $942 million due to a favorable glass pricing environment. 
  • Optical Communications sales rose 24% Y/Y to $1.2 billion as 5G, broadband, and cloud computing continue to drive growth across the segment.
  • Specialty Materials sales declined 5% Y/Y to $518 million. Life Sciences sales rose 16% Y/Y to $317 million.
  • Environmental Technologies sales declined 21% Y/Y to $353 million, reflecting lower production levels in the automotive industry due to the semiconductor chip shortage.
  • Margin: The core gross margin contracted 180 basis points Q/Q to 36.5%. The below-normal automotive production, seasonally lower sales in Specialty Materials, and inflationary headwinds reduced profitability.
  • Core EPS of $0.54 beat the consensus of $0.52.
  • Corning generated $425 million in free cash flow. 
  • Outlook: Corning sees Q1 FY22 core sales of $3.5 billion – $3.7 billion, above the consensus of $3.42 billion. It sees core EPS of $0.48 – $0.53 versus the consensus of $0.48.
  • Corning sees FY22 sales of $15 billion and profit to grow faster than sales.
  • Price action: GLW shares traded higher by 10.3% at $38.95 in the premarket session on the last check Wednesday.

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