Corning Q1 2023 Earnings Report
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
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