Corning slips post-earnings; telecom, specialty materials to weigh on Q4

Though Corning's (GLW -1.6%) Q3 results and Q4 outlook are in-line with the numbers/commentary it provided on Oct. 22, shares are giving back a sliver of the massive gains they saw last week in response to the Samsung deal.

Display Technologies sales (inc. LCD TV glass) +7% Y/Y to $689M after rising 21% in Q2. Glass volumes rose at a low-teens rate Y/Y, and price declines were "moderate."

LCD glass volumes are expected to be down by a low single-digit % Q/Q in Q4, and price declines "consistent with recent quarters." Global TV demand is in-line with expectations. By giving Corning full ownership of Samsung Corning, the Samsung deal should boost Corning's LCD glass numbers in time.

Telecom sales +24% Y/Y to $650M after rising 8% in Q2. But they're expected to be down slightly Y/Y in Q4 due to weakening optical fiber sales.

Specialty Materials sales (inc. Gorilla Glass) -10% Y/Y to $326 after rising 2% in Q2. Sales are expected to be flat Q/Q, which implies an 18% Y/Y drop.

Environmental Technologies -3% Y/Y to $225M, better than Q2's -8%. Life Sciences (boosted by M&A) +39% to $215M vs. +35% in Q2.

Gross margin was 44%, +100 bps Q/Q and Y/Y. $209M was spent on buybacks. Opex -3% Y/Y thanks to job cuts.

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Comments (3)
  • mikeurl
    , contributor
    Comments (735) | Send Message
    Corning has a really well designed portfolio of products. Whenever one segment is falling another is rising.


    The hero this quarter? Telecom.
    30 Oct 2013, 10:59 AM Reply Like
  • TASCer
    , contributor
    Comments (22) | Send Message
    So True, I just wish The Street would give them some due respect one of these days.
    30 Oct 2013, 11:20 AM Reply Like
  • mirecek78
    , contributor
    Comment (1) | Send Message
    Aaaarrrrgh...>_< ...why oh why are you tormenting me so much, GLW? Have I not been a faithful investor to you? Have I not put a bunch of my hard earned money into you? Would it be too much to ask to have just one, only ONE freakin' blowout quarter? Dear Corning - you are boring, boring, boring. ...but I'm not selling you anyway, because I love you. :)
    31 Oct 2013, 11:14 AM Reply Like
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