Corning Q3 2022 Earnings Report
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
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