NYSE$GLW

Corning Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Corning's Q2 2024 financial performance exceeded guidance, marking a return to year-over-year sales growth, driven by the adoption of new optical connectivity products.

Corning Incorporated reported strong second-quarter 2024 results, exceeding previous guidance and demonstrating a return to year-over-year core sales and EPS growth. The company's outperformance was primarily driven by the strong adoption of new optical connectivity products for generative AI, particularly within the Enterprise portion of its Optical Communications business. Management expressed confidence in the 'Springboard' plan, expecting substantial annualized sales growth and improved profitability.

  • Corning's Q2 results exceeded April guidance, with a return to year-over-year core sales and EPS growth.
  • Optical Communications segment saw record sales in the Enterprise portion, driven by AI-related connectivity solutions.
  • An agreement was reached with Lumen Technologies to reserve 10% of Corning’s global fiber capacity for AI data center interconnection.
  • Core gross margin and operating margin improved, with adjusted free cash flow growing to $353 million.

Headline financials

Total Revenue

$3.25B

Previous: $3.24B+0.2%
EPS

$0.12

Previous: $0.45-73.3%
Core Op Margin

17.4%

No prior period
Core ROIC

11.0%

No prior period
Core Gross Margin

37.9%

No prior period
Capital Expenditures

-$494M

Previous: -$770M+35.8%
Free Cash Flow

-$390M

Previous: -$489M+20.2%
Net Income

$104M

Previous: $281M-63.0%
Operating Income

$186M

Previous: $279M-33.3%
Gross Profit

$949M

Previous: $1.01B-6.3%
Total Assets

$27.2B

Previous: $28.6B-5.1%
R&D Expense

$262M

No prior period
Stock-Based Comp

$66M

Previous: $59M+11.9%

Revenue & EPS history

Corning · Revenue · Quarterly

$3.25B

Q2 2024+0.2%vs Q2 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Corning · $2.68B total across 4 segments · Q3 2023

  • Display
    $972M+41.7%
  • Optical Comm
    $918M-29.4%
  • Specialty Materials
    $563M+8.5%
  • Life Sciences
    $230M-26.3%

Forward guidance

For the third quarter, Corning expects core sales to grow to approximately $3.7 billion, with core EPS to be in the range of $0.50 to $0.54, driven by continued adoption of new optical connectivity products for generative AI.

Tailwinds

  • Core sales are expected to grow to approximately $3.7 billion.
  • Core EPS is expected to grow faster than sales.
  • Core EPS is projected to be in the range of $0.50 to $0.54.
  • Continued adoption of new optical connectivity products for generative AI is expected.
  • The company is progressing well toward delivering its 'Springboard' plan.

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 2024

Historical avgQ2 2024

+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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