NYSE$GLW

Corning Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Corning's first-quarter sales and EPS met expectations, reflecting recession-level demand in key markets and weakness in China. Pricing and productivity actions drove sequential increases in gross and operating margin percentages despite lower sales. Management anticipates improvement in sales, profitability, and cash flow for the second quarter.

Corning's first-quarter results showed solid execution on outlined priorities, with pricing actions offsetting inflation and productivity ratios being adjusted effectively. Profitability improved despite lower sales due to recession-level demand and weakness in China. The company expects improved results in the second quarter and remains focused on profitability and cash flow.

  • First-quarter GAAP sales were $3.2 billion, while core sales reached $3.4 billion, both declining 7% sequentially.
  • Optical Communications' sales decreased 6% sequentially due to normal seasonal volume decline.
  • Management expects second-quarter sales, EPS, and cash flow to increase sequentially, with core sales in the range of $3.4 billion to $3.6 billion and core EPS in the range of $0.42 to $0.49.
  • Gross margin was 35.2%, and operating margin was 15.5%, demonstrating meaningful improvements from the fourth quarter.

Headline financials

Total Revenue

$3.18B

Previous: $3.68B-13.6%
EPS (adj)

$0.41

Previous: $0.54-24.1%
Capital Expenditures

-$382M

Previous: -$383M+0.3%
Free Cash Flow

-$206M

Previous: $198M-204.0%
Net Income

$176M

Previous: $581M-69.7%
Operating Income

$297M

Previous: $570M-47.9%
Gross Profit

$1B

Previous: $1.28B-21.8%
Cash & Equivalents

$1.15B

Previous: $2.02B-43.2%
Total Assets

$28.8B

Previous: $30.3B-4.7%
Stock-Based Comp

$52M

Previous: $42M+23.8%

Revenue & EPS history

Corning · Revenue · Quarterly

$3.18B

Q1 2023-13.6%vs Q1 2022
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Corning · $2.53B total across 4 segments · Q1 2023

  • Optical Comm
    $1.1B-8.3%
  • Display
    $763M-20.4%
  • Specialty Materials
    $406M-17.6%
  • Life Sciences
    $256M-17.4%

Forward guidance

Management expects second-quarter sales, EPS, and cash flow to increase sequentially, with core sales in the range of $3.4 billion to $3.6 billion and core EPS in the range of $0.42 to $0.49.

Tailwinds

  • Management expects second-quarter sales, EPS, and cash flow to increase sequentially.
  • Core sales are expected to be in the range of $3.4 billion to $3.6 billion.
  • Core EPS is expected to be in the range of $0.42 to $0.49.
  • Profit-improvement initiatives are expected to drive increased profitability.
  • Continued recovery in Display Technologies is expected.

Headwinds

  • Conditions remain weak in multiple markets.
  • Sales impacted by recession-level demand in several key markets.
  • Overall weakness in China impacted sales.
  • Greater-than-normal seasonal volume decline associated with the pacing of customer projects.
  • Glass price declined slightly.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.1%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

49%

36 / 73 earnings

Positive

+14.9%

Q4 2021

Best reaction

-9.9%

Q2 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-5.8%+9.0%
Q4 2025-5.0%+0.6%+37.0%
Q3 2025-3.3%-0.3%-6.5%
Q2 2025-1.9%+1.2%+6.0%
Q1 2025+0.8%+3.8%+13.3%
Q4 2024-2.8%+0.2%-2.1%
Q3 2024+2.6%+3.2%+2.9%
Q2 2024-6.3%-8.8%-1.9%
Q1 2024+5.3%+6.1%+16.3%
Q4 2023+4.3%+3.5%+3.5%
Q3 2023-0.6%-1.3%+4.6%
Q2 2023+3.6%+1.7%-3.7%
Q1 2023-4.2%-1.3%-7.8%
Q4 2022-3.1%-1.8%-5.2%
Q3 2022+0.2%+0.5%+4.9%
Q2 2022+4.2%+6.6%+3.9%
Q1 2022+4.8%+2.2%+2.3%
Q4 2021+14.9%+19.1%+16.4%
Q3 2021-8.3%-7.9%+1.1%
Q2 2021-0.5%+1.9%-2.1%
Q1 2021-3.7%-4.0%-6.0%
Q4 2020-2.0%-3.4%+2.9%
Q3 2020-7.4%-6.7%+8.9%
Q2 2020+3.2%+1.2%+4.9%
Q1 2020+3.9%-4.5%+6.6%
Q4 2019-1.1%-3.9%-14.8%
Q3 2019-0.7%-3.4%-4.1%
Q2 2019-9.8%-14.1%-18.7%
Q1 2019-4.2%-5.2%-13.5%
Q4 2018+10.4%+9.0%+14.7%
Q3 2018-1.7%-0.5%-0.4%
Q2 2018+12.7%+10.4%+10.6%
Q1 2018-1.6%-1.0%-0.6%
Q4 2017-8.8%-8.7%-17.1%
Q3 2017+5.1%+5.0%+6.0%
Q2 2017-8.2%-9.3%-10.8%
Q1 2017+3.2%+4.8%+7.4%
Q4 2016+7.7%+7.7%+11.3%
Q3 2016-3.6%-5.1%+1.3%
Q2 2016+2.7%+2.7%+4.4%
Q1 2016-8.0%
Q4 2015+6.9%
Q3 2015+8.7%
Q2 2015+0.5%
Q1 2015-4.6%
Q4 2014+1.3%
Q3 2014+5.5%
Q2 2014-9.9%
Q1 2014+0.6%
Q4 2013-5.8%
Q3 2013-2.4%
Q2 2013-1.3%
Q1 2013+8.4%
Q4 2012-1.2%
Q3 2012-9.8%
Q4 2011+1.7%
Q2 2012-7.0%
Q1 2012+7.1%
Q3 2011+8.4%
Q2 2011-2.3%
Q1 2011-0.9%
Q4 2010-1.9%
Q3 2010+0.3%
Q2 2010+5.5%
Q1 2010+1.0%
Q4 2007+1.1%
Q2 2009+1.1%
Q4 2009+1.1%
Q3 2008-0.1%
Q3 2009-0.1%
Q1 2009+0.2%
Q4 2008+0.2%
Q2 2008+0.2%

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