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Jun 30, 2024
Corning Q2 2024 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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