Corning Q2 2020 Earnings Report
Key Takeaways
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
Corning
Corning
Corning Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income