What to Expect From Corning Incorporated’s Upcoming Q3 Results?

• Corning Inc. (NYSE:GLW) reported a higher-than-expected EPS of $0.57, beating the estimated $0.56.
• The company's revenue reached approximately $3.87 billion, surpassing the anticipated $3.76 billion.
• Despite positive financial results, Corning's stock experienced a decline of 2.73%, with a current price of $50.15.

Corning Inc. (NYSE:GLW), a prominent player in the specialty glass and ceramics industry, recently announced its fourth-quarter earnings for 2024. The company, known for its innovative materials and solutions, competes with other industry giants in the technology and manufacturing sectors. Corning's latest financial results provide a snapshot of its performance and market position.

On January 29, 2025, Corning reported earnings per share (EPS) of $0.57, surpassing the estimated $0.56. This achievement marks a notable improvement from the $0.39 EPS reported in the same quarter of the previous year. The company's revenue also exceeded expectations, reaching approximately $3.87 billion compared to the anticipated $3.76 billion, as highlighted by Zacks Investment Research.

Despite these positive financial results, Corning's stock experienced a decline of 2.73%. The stock is currently priced at $50.15, reflecting a decrease of 2.11% or $1.08. Throughout the day, the stock fluctuated between a low of $49.61 and a high of $55.33, which is also its highest price over the past year. The lowest price for GLW in the past year was $30.72.

Corning's market capitalization stands at approximately $42.94 billion, indicating its significant presence in the market. The trading volume for the day reached 9,039,731 shares, showcasing active investor interest. Despite the stock's recent decline, Corning's financial performance demonstrates its resilience and ability to exceed market expectations.

Corning Incorporated (NYSE:GLW) delivered better-than-expected fourth-quarter earnings. The specialty glass and ceramics company reported adjusted earnings per share of $0.57, slightly surpassing analyst forecasts of $0.56. However, revenue came in at $3.5 billion, falling short of the projected $3.75 billion.

Despite missing revenue estimates, Corning’s core sales—excluding certain items—reached a record $3.9 billion, marking an 18% year-over-year increase. The company also saw improved profitability, with its core operating margin expanding by 220 basis points to 18.5%.

Looking ahead, Corning remains optimistic about its performance in early 2024. Management forecasts core sales to climb approximately 10% year-over-year to $3.6 billion in the first quarter, with core earnings per share expected to rise by roughly 30% to a range of $0.48 to $0.52.

For the full year 2024, the company reported GAAP revenue of $13.1 billion, a gross margin of 32.6%, and an operating margin of 8.7%. Corning posted GAAP earnings per share of $0.58 and generated $1.9 billion in operating cash flow, reinforcing confidence in its financial strength heading into the new year.

Corning (NYSE:GLW) shares rose more than 3% on Tuesday after Argus analysts increased their price target on the company to $50 from $40 while maintaining a Buy rating.

The adjustment followed Corning's announcement that it was raising its guidance for the second quarter of 2024. Corning now anticipates core revenue of $3.6 billion, up from the original guidance of $3.4 billion. Additionally, management expects EPS to be at the high end or slightly above the guidance range of $0.42-$0.46 per share. Corning's "Springboard" program aims to grow annualized revenue by $3 billion over the next three years, driven by both secular trends and cyclical factors. CEO Wendell Weeks stated that Corning has the necessary capacity and capabilities for this expansion.

The company is optimistic about growth prospects across all its end markets and expects significant incremental profit and cash flow as it captures this growth.

Citi analysts raised the price target for Corning (NYSE:GLW) to $45 from $38, while maintaining their Buy rating on the stock.

Following Corning's recent investor event, the analysts updated estimates to reflect increased confidence in the company's revenue potential and profitability improvements for fiscal years 2025 and 2026. This optimism is based on more controlled spending supporting a higher revenue base. The analysts anticipate a favorable environment for revenue and margin recovery as optical demand rebounds with carrier spending, aided by BEAD initiatives, and AI investments drive higher optical growth in enterprises. Additionally, a recovery in smartphone demand will benefit Corning's specialty glass segment. Management's commitment to keeping spending in check as revenues increase is also seen as a positive factor.

In the near term, utilization levels at display panel manufacturers are performing better than expected in the second quarter. Corning is expected to implement price increases to counteract yen impacts, given the tight supply-demand environment.