NYSE$GLW

Corning Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Corning's third-quarter results were highlighted by growth in Optical Communications and solar sales.

Corning Incorporated reported a slight increase in core sales year-over-year, reaching $3.7 billion, with core EPS of $0.51. The company saw growth in Optical Communications and Hemlock and Emerging Growth Businesses, which helped offset declines in Display Technologies due to lower panel maker utilization.

  • Core sales increased 1% year over year, driven by secular growth initiatives.
  • Optical Communications experienced 16% year-over-year growth.
  • Hemlock and Emerging Growth Businesses grew 33% year-over-year due to solar market demand.
  • Display Technologies' sales declined 28% year over year due to lower panel maker utilization.

Headline financials

Total Revenue

$3.49B

Previous: $3.62B-3.5%
EPS (adj)

$0.51

Previous: $0.56-8.9%
Capital Expenditures

-$1.2B

Previous: -$1.01B-18.4%
Free Cash Flow

-$993M

Previous: -$643M-54.4%
Net Income

$208M

Previous: $371M-43.9%
Operating Income

$292M

Previous: $552M-47.1%
Gross Profit

$1.06B

Previous: $1.32B-19.6%
Cash & Equivalents

$1.63B

Previous: $2.21B-26.3%
Total Assets

$28.7B

Previous: $29.7B-3.3%
Stock-Based Comp

$52M

Previous: $39M+33.3%

Revenue & EPS history

Corning · Revenue · Quarterly

$3.49B

Q3 2022-3.5%vs Q3 2021
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Corning · $2.82B total across 4 segments · Q3 2022

  • Optical Comm
    $1.3B+15.0%
  • Display
    $686M-28.2%
  • Specialty Materials
    $519M-6.7%
  • Life Sciences
    $312M+2.3%

Forward guidance

Looking ahead to the fourth quarter, Corning expects $3.45 billion to $3.65 billion in core sales with core EPS of $0.41 to $0.47.

Tailwinds

  • Panel maker utilization reached the bottom in September.
  • When glass demand increases, volume is expected to return.
  • When glass demand increases, company profitability is expected to improve.
  • Company expects to continue outperforming the markets.
  • Company will maintain strong financial stewardship.

Headwinds

  • Panel makers reduced their production levels below already low expectations.
  • Company would like to see more evidence before guiding a significant recovery in glass demand.
  • Optical Communications’ sales are expected to be down sequentially due to customer project timing.
  • Lower glass volume resulted in a 28% year-over-year decline in Display Technologies’ sales and caused a drag on the company’s overall profitability.
  • Three of key demand drivers are down.

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 Q3 2022

Historical avgQ3 2022

+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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