NYSE$GLW

Corning Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Corning reported strong sequential growth in sales, EPS, and free cash flow, driven by the execution of its business strategy, which counteracted end-market challenges. The company implemented an adjusted operating plan and took actions to protect its financial strength.

Corning Incorporated reported mixed results for Q2 2020. While GAAP EPS was negative, core EPS showed positive growth. Sales, net income, EPS, and free cash flow all increased sequentially. The company highlighted advancements in multiple initiatives and its contribution to combating the COVID-19 pandemic. Overall, decisive action and operational execution resulted in positive free cash flow and continued leadership in its capabilities.

  • GAAP and core sales were $2.6 billion; versus the first quarter, GAAP sales increased 7% and core sales increased 2%
  • GAAP EPS was $(0.13); core EPS was $0.25, up 25% sequentially
  • GAAP net loss was $71 million; core net income was $218 million, up 23% sequentially
  • Free cash flow of $285 million improved sequentially and keeps Corning on track to be free cash flow positive for the full year

Headline financials

Total Revenue

$2.59B

Previous: $2.94B-12.0%
EPS (adj)

$0.25

Previous: $0.45-44.4%
Free Cash Flow

$285M

Previous: $92M+209.8%
Net Income

-$71M

Previous: $92M-177.2%
Operating Income

-$103M

Previous: $374M-127.5%
Gross Profit

$756M

Previous: $1.07B-29.0%
Cash & Equivalents

$2.16B

Previous: $1.18B+83.2%
Total Assets

$27.5B

Previous: $27.6B-0.1%
Stock-Based Comp

$65M

Previous: $30M+116.7%

Revenue & EPS history

Corning · Revenue · Quarterly

$2.59B

Q2 2020-12%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Corning · $2.3B total across 4 segments · Q2 2020

  • Optical Comm
    $887M
  • Display
    $753M
  • Specialty Materials
    $417M+13.0%
  • Life Sciences
    $243M

Forward guidance

Across Corning’s businesses, demand and visibility improved throughout the second quarter. As a result, the company expects sequential sales and profit growth in the third quarter. The level of growth will depend on end-market demand and economic activity in August and September.

Tailwinds

  • Expect sequential sales growth in Q3
  • Expect sequential profit growth in Q3
  • Demand improved throughout the second quarter
  • Visibility improved throughout the second quarter
  • Becoming more efficient

Headwinds

  • Level of growth will depend on end-market demand
  • Level of growth will depend on economic activity in August
  • Level of growth will depend on economic activity in September
  • COVID-19 pandemic
  • global business, financial, economic and political conditions

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 Q2 2020

Historical avgQ2 2020

+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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