- Corning (GLW -1.6%) spent $616M on buybacks in Q2. That helped EPS slightly beat estimates in spite of a small revenue miss. Also helping: Core gross margin rose 100 bps Y/Y to 45% (GAAP GM was flat at 42%), and R&D spend fell 8% to $191M. SG&A spend rose 5% to $337M.
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Display Technologies (LCD glass): Sales fell 20% Y/Y to $789M, thanks in large part to a $174M forex hit from a weak yen. Net income nonetheless rose 7% to $303M. Glass volume rose by a low-single digit % Q/Q, and glass prices fell "moderately," in-line with expectations. Glass volume is expected to rise by a low-single digit % in Q3; price declines are expected to remain moderate. However, Corning has cut its forecast for global 2015 LCD glass growth to 6%-7%; weak PC, tablet, and European/Latin TV sales are cited.
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Optical Communications (fiber): Sales rose 17% to $800M, and net income 26% to $77M. Corning is hiking its full-year outlook for the segment, citing strong fiber-to-the-home (FTTH) and data center demand - it expects mid-teens Y/Y growth in both Q3 and 2015.
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Specialty Materials (Gorilla Glass): Sales fell 9% to $272M, while net income rose 13% to $44M. Advanced optics product sales fell, while Gorilla Glass volumes rose at a mid-teens clip. Gorilla Glass volume (likely boosted by iPhone 6S orders) is expected to rise by a high-single digit % Q/Q in Q3.
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Environmental Technologies: Sales fell 9% to $260M, and net income 2% to $46M. Sales are expected to be down slightly Y/Y in Q3 due to forex.
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Life Sciences: Sales fell 5% to $211M, and net income was flat at $18M. Sales are expected to drop slightly Y/Y due to forex.
- Corning ended Q2 with $5.47B in cash/short-term investments, and $4.01B in long-term debt.
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Q2 results, PR