Corning's Outlook Signals Sales Challenges In Q1, But CEO Foresees $3B Revenue Growth In Medium Term
Portfolio Pulse from Anusuya Lahiri
Corning Inc (NYSE:GLW) reported a 10% Y/Y decline in Q4 FY23 core sales to $3.27 billion, slightly above consensus. Core EPS was $0.39, matching consensus. Sales varied across segments, with Display Technologies and Environmental Technologies growing Y/Y, while Optical Communications, Specialty Materials, and Life Sciences declined. Core gross margin increased to 37%, and free cash flow improved. CEO Wendell P. Weeks expects $3B revenue growth in the medium term. Q1 outlook is below consensus with expected core sales of $3.10 billion and EPS of $0.32 - $0.38. GLW shares rose 6.50% to $33.18.
January 30, 2024 | 5:43 pm
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Corning Inc reported mixed Q4 results with a sales beat but overall decline, and a medium-term growth forecast. Q1 guidance is below consensus, but shares surged 6.5%.
Despite the Y/Y decline in sales, Corning's Q4 performance exceeded expectations, and the CEO's forecast for significant medium-term growth is positive. The Q1 outlook is cautious, but the immediate positive reaction in share price suggests short-term investor confidence. The 6.5% rise in stock price indicates a positive short-term impact, but the below-consensus Q1 guidance could temper gains.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100