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Dec 31, 2022

Corning Q4 2022 Earnings Report

Corning's Q4 2022 financial results were released, showing a mix of challenges and strategic resilience.

Key Takeaways

Corning Incorporated reported fourth-quarter GAAP sales of $3.4 billion and core sales of $3.6 billion. GAAP EPS was $(0.04), while core EPS reached $0.47. The company's performance reflected strategic resilience, with Optical Communications and Hemlock and Emerging Growth Businesses demonstrating double-digit year-over-year sales growth, and Display Technologies maintaining stable pricing.

Fourth-quarter GAAP sales were $3.4 billion, and core sales were $3.6 billion.

Fourth-quarter GAAP EPS was $(0.04), and core EPS was $0.47.

Free cash flow for the quarter was $377 million.

Pricing and productivity improvement actions taken in Q4 2022 are expected to deliver profitability and cash flow benefits starting in Q1 2023.

Total Revenue
$3.63B
Previous year: $3.71B
-2.2%
EPS
$0.47
Previous year: $0.54
-13.0%
Gross Profit
$915M
0
Cash and Equivalents
$1.67B
Previous year: $2.15B
-22.2%
Free Cash Flow
$377M
Previous year: $425M
-11.3%
Total Assets
$29.5B
Previous year: $30.2B
-2.2%

Corning

Corning

Corning Revenue by Segment

Forward Guidance

For the first quarter, management expects core sales in the range of $3.2 billion to $3.4 billion and core EPS in the range of $0.35 to $0.42. Management expects sales to decline more than seasonally due to pandemic-related disruptions in China.

Positive Outlook

  • Benefits of recent actions will improve profitability despite lower sales.
  • Expect first-quarter core EPS in the range of $0.35 to $0.42.
  • Actions to increase price and improve productivity in the fourth quarter of 2022.
  • Expect sales to improve from these levels in the second quarter.
  • Well positioned to capture growth as our end markets recover.

Challenges Ahead

  • Management expects sales to decline more than seasonally due to pandemic-related disruptions in China.
  • Sales expected to be impacted by pandemic-related disruptions in China.
  • Television market impacted by pandemic-related disruptions in China.
  • Automotive market impacted by pandemic-related disruptions in China.
  • Smartphone market impacted by pandemic-related disruptions in China.

Revenue & Expenses

Visualization of income flow from segment revenue to net income