Corning Inc (NYSE:GLW) shares are trading higher after the company reported third-quarter 2024 results.
Core sales growth of 8% year-on-year to $3.73 billion, beating the analyst consensus estimate of $3.72 billion.
The Apple glass supplier's core EPS of 54 cents beat the analyst consensus estimate of 52 cents.
- Display Technologies' sales grew by 4% year-over-year to $1.015 billion.
- Optical Communications sales increased by 36% year-over-year to $1.246 billion — record sales in the Enterprise portion of the business (up 55%).
- Specialty Materials sales fell 3% year over year to $548 million in the quarter.
- Life Sciences sales increased by 6% year-over-year to $244 million
- Environmental Technologies sales declined by 15% year-over-year to $382 million.
- Hemlock and Emerging Growth Businesses sales declined 9% year over year to $298 million in the quarter.
- The core gross margin increased by 220 bps to 39.2%. The adjusted free cash flow was $553 million in the quarter.
Outlook: Corning expects fourth-quarter core sales of $3.75 billion (consensus $3.67 billion) and core EPS of $0.53-$0.57 (consensus $0.52).
Chair and CEO Wendell P. Weeks said, "In Display Technologies, we implemented price increases and expect to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%. Additionally, in Optical Communications, our new products for generative AI are seeing strong demand and driving record year-over-year growth in our Enterprise business."
Yesterday, Corning inked a multi-year agreement with AT&T, which is valued at over $1 billion.
In September, Corning provided significant updates to its "Springboard" plan of adding more than $3 billion in annualized sales and shared its strategy to achieve a 20% operating margin by the end of 2026.
Investors can gain exposure to GLW via ProShares Smart Materials ETF (NYSE:TINT) and Professionally Managed Portfolios Otter Creek Focus Strategy ETF (NYSE:OCFS).
Price Action: GLW shares are up 8.24% at $50.70 premarket at the last check Tuesday.
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