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Sep 30, 2022
Corning Q3 2022 Earnings Report
Corning's third-quarter results were highlighted by growth in Optical Communications and solar sales.
Key Takeaways
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.
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
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income