Corning (GLW, Financial) announced its first-quarter financial results, reporting revenue of $3.45 billion, which fell short of the anticipated $3.63 billion. Despite this, the company achieved notable performance, as highlighted by Wendell Weeks, the chairman and CEO. Core sales have seen a year-over-year increase of 13%, with core earnings per share rising at a rate three times faster.
A significant driver of this growth was Corning's Optical Communications segment. Particularly, their Enterprise business experienced an astonishing 106% increase in sales compared to the previous year. This surge was largely attributed to robust demand for new products designed for the next generation of artificial intelligence technologies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Corning Inc (GLW, Financial) is $53.24 with a high estimate of $60.00 and a low estimate of $42.00. The average target implies an upside of 20.73% from the current price of $44.10. More detailed estimate data can be found on the Corning Inc (GLW) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Corning Inc's (GLW, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Corning Inc (GLW, Financial) in one year is $38.72, suggesting a downside of 12.2% from the current price of $44.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Corning Inc (GLW) Summary page.
GLW Key Business Developments
Release Date: January 29, 2025
- Revenue: $3.9 billion in Q4 2024, up 18% year over year.
- Earnings Per Share (EPS): $0.57 in Q4 2024, up 46% year over year.
- Operating Margin: Expanded by 220 basis points to 18.5% in Q4 2024.
- Return on Invested Capital (ROIC): Increased by 390 basis points to 12.7% in Q4 2024.
- Free Cash Flow: $1.25 billion for the full year 2024, up 42% year over year.
- Optical Communications Sales: $1.37 billion in Q4 2024, up 51% year over year.
- Display Technologies Sales: $971 million in Q4 2024, up 12% year over year.
- Specialty Materials Sales: $515 million in Q4 2024, up 9% year over year.
- Environmental Technologies Sales: $397 million in Q4 2024, down 7% year over year.
- Life Sciences Sales: $250 million in Q4 2024, up 3% year over year.
- Hemlock and Emerging Growth Businesses Sales: $373 million in Q4 2024, up 5% year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Corning Inc (GLW, Financial) reported a record fourth-quarter sales of $3.9 billion, marking an 18% year-over-year increase.
- Earnings per share (EPS) grew by 46% to $0.57, showcasing strong profitability.
- The company expanded its operating margin by 220 basis points to 18.5% and return on invested capital by 390 basis points to 12.7%.
- Corning Inc (GLW) generated strong free cash flow of $1.25 billion for 2024, up 42% from the previous year.
- The Optical Communications segment saw a 51% year-over-year sales increase in the fourth quarter, driven by strong demand for Gen AI products.
Negative Points
- Environmental Technologies segment experienced a 7% year-over-year decline in fourth-quarter sales due to weaker markets in Europe.
- The company anticipates the global heavy-duty market to decline slightly in 2025, particularly in North America.
- Specialty Materials sales were down 6% sequentially in the fourth quarter, despite a 9% year-over-year increase.
- Corning Inc (GLW) faces potential risks in achieving its non-risk-adjusted plan due to market dynamics and timing of secular trends.
- The BEAD program's impact on sales is uncertain, with expectations of significant contributions not anticipated until 2026.
