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Mar 31, 2023
Corning Q1 2023 Earnings Report
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.
Key Takeaways
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.
Corning
Corning
Corning Revenue by Segment
Revenue by Segment
Optical Communications Revenue
CapyFin.comDisplay Technologies Revenue
CapyFin.comSpecialty Materials Revenue
CapyFin.comLife Sciences Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income