Corning Inc.

What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Last vote:
  • Tue, Jan. 26, 9:40 AM
    • Thanks to a weak yen and soft PC/TV sales, Corning's (GLW +1.4%) core Display Technologies segment saw revenue drop 21% Y/Y in Q4 (14% exc. forex) to $732M. Division net income fell 53% to $243M, and core earnings (excludes forex and forex hedges, among other things) 34% to $234M. As expected, glass volumes fell slightly Q/Q, and prices fell less Q/Q than in Q3.
    • Segment performance: Optical Communications sales rose 9% Y/Y to $736M, and core earnings fell by $1M to $47M; strong data center fiber demand likely boosted sales. Environmental Technologies sales rose 2% to $254M; core earnings fell by $7M to $29M. Specialty Materials (includes Gorilla Glass) revenue fell 14% to $275M; core earnings rose by $14M to $44M.
    • Display Technologies guidance: LCD glass volume is expected to drop by a mid-to-high single-digit % Q/Q in Q1, with lower factory utilization among panel makers (expected to lower supply chain inventories) weighing. For 2016, glass volume is expected to grow by a mid-single digit %, aided by a low-single digit increase in TV sales and an increase in average screen size of at least 1.5". Moderate Q/Q price declines are expected to occur in Q1 and the whole of 2016.
    • Other guidance: Specialty Materials revenue is expected to drop by a mid-teen % Y/Y in Q1 (iPhone-related weakness could be weighing), but grow by a low-teen % in 2016 (the iPhone 7 launch should provide a lift). Optical Communications sales are expected to grow by a low-to-mid single digit % in Q1, and by a mid-single digit % in 2016. Environmental Technologies sales are expected drop by 10% in Q1 - weak North American heavy-duty truck sales are blamed - and by a low-single digit % in 2016.
    • Financials: A $1.25B accelerated buyback (announced in October, as part of a $4B buyback authorization) was finished in January. Q4 gross margin fell 300 bps Y/Y on a reported basis to 38%, and 200 bps on a core performance basis to 42%. Adjusted SG&A spend fell by 3% Y/Y to $370M; adjusted R&D spend fell by less than 1% to $208M. Free cash flow was $628M in Q4, and $1.46B in 2015. Corning ended Q4 with $4.6B in cash/short-term investments, and $4.5B in debt.
    • Corning's Q4 results, earnings release
    | Tue, Jan. 26, 9:40 AM
  • Dec. 11, 2015, 9:16 AM
    | Dec. 11, 2015, 9:16 AM
  • Dec. 11, 2015, 7:55 AM
    • Separate from its merger news, Dow Chemcial (NYSE:DOW) says it will buy the remaining stake in its 50/50 joint venture with Corning (NYSE:GLW).
    • Dow says the deal will help it capture $400M in annual cost savings from the restructured ownership, and expects to yield more than $1B in additional annual EBITDA at full run-rate synergies; it is expected to be accretive to operating EPS, cash flow from operations and free cash flow in the first full year after the close of the transaction, expected in H1 2016.
    • GLW will exchange its 50% interest in Dow Corning for 100% of the stock of a newly formed entity that will become a wholly owned subsidiary, which will hold ~40% ownership in Hemlock Semiconductor Group and ~$4.8B in cash.
    • DOW +0.8%, GLW +5.5% premarket.
    | Dec. 11, 2015, 7:55 AM | 13 Comments
  • Oct. 22, 2015, 2:09 PM
    • During its Q3 earnings call, Dow Chemical (DOW +3.6%) stated it might buy Corning's (NYSE:GLW) stake in the companies' Dow Corning silicon product JV, as part of a broader effort to restructure its JV interests.
    • Dow added talks have already been held with Corning. The company disclosed last year Corning wanted out of the JV, following its 2013 deal to buy Samsung's stake in an LCD glass JV.
    • Dow Corning's sales fell 5% Y/Y in Q2 to $1.42B, thanks to a strong dollar and weak polysilicon sales to solar manufacturers. Adjusted net income nonetheless rose 27% to $127M, aided by strong demand within the JV's high-margin silicones business.
    • Earlier: Dow jumps on Q3 EPS beat, accelrated buyback, restructuring efforts
    | Oct. 22, 2015, 2:09 PM | 9 Comments
  • Sep. 16, 2015, 11:50 AM
    • Market chatter that an activist is buying shares of Corning (GLW +1.7%) - Carl Icahn's name has been mentioned - has lifted the glass giant's shares.
    • Worth noting: Many prior rumors involving Icahn haven't panned out
    • Yesterday: Corning higher following bullish Deutsche coverage
    | Sep. 16, 2015, 11:50 AM | 9 Comments
  • Jul. 13, 2015, 9:34 AM
    • Stating LCD glass volumes are likely to disappoint, BofA/Merrill has downgraded Corning (NYSE:GLW) to Underperform ahead of its July 28 Q2 report, and set a $16 target.
    • BofA thinks Corning's end-markets are performing worse than expected, and forecasts Q3 glass volume will be flat-to-down Q/Q, worse than a consensus for 7%-10% growth.
    • Shares now -17% YTD. They trade for 12x a 2016 EPS consensus of $1.60. RBC upgraded last month.
    | Jul. 13, 2015, 9:34 AM | 25 Comments
  • Jun. 8, 2015, 9:45 AM
    • Corning (GLW +0.7%) has a good product pipeline, a compelling valuation, and strong exposure to 4K TV growth, argues Barron's in an upbeat weekend column. "All in all, the picture at Corning is clear and bright."
    • The paper notes Corning expects 4K TV shipments to more than double in 2015 to 25M units - JPMorgan sees shipments rising 171% to 33.3M, and another 62% next year to 53.8M - thereby lifting a Display Technologies unit that accounts for 64% of profits. It also sees Corning's antimicrobial glass and bendable Willow Glass, and an optical division benefiting from strong FTTH and data center fiber demand, acting as potential growth engines.
    • Barron's adds shares trade for a moderate ~11x expected 2017 EPS, that the dividend yield stands at 2.3% and that Corning "has bought back 12% of its shares outstanding and raised its dividend four times" since 2011. CEO Wendell has stated capital returns will continue growing.
    • Shares opened up over 2%, but have since pared their gains.
    | Jun. 8, 2015, 9:45 AM | 8 Comments
  • Apr. 29, 2015, 10:01 AM
    • CLSA has downgraded Corning (GLW -3.1%) to Sell from Underperform a day after the company posted mixed Q1 results. The firm thinks LCD TV glass comps will be tougher in 2H15 - the division's revenue fell 13% Y/Y in Q1 thanks to a weak yen - and that high inventories and lower forex hedging gains will also act as headwinds.
    • Meanwhile, the company's Dow Corning JV with Dow Chemical (DOW -0.6%) has posted its Q1 results: Revenue fell 11% Y/Y to $1.36B, and adjusted net income 8% to $101M.
    • Weak sales of polysilicon (used in solar cell/module production) weighed on Dow Corning's results - the company blames "the timing of customers taking product under long-term contracts." Its silicones business "experienced volume growth in several of its highly specialized product lines, especially for materials sold in construction, healthcare and packaging applications," but also saw a 4.7% revenue growth impact from a strong dollar.
    • The JV is less than 5 months removed from announcing it's shutting down a Clarksville, TN polysilicon plant, and taking a related $1.5B-$1.6B charge. On its CC (transcript), Corning stated it expects its share of Dow Corning's earnings will rise to $60M in Q2 (implies total adjusted net income of $120M) from $51M in Q1; silicones sales are expected to be flat Y/Y, and polysilicon sales lower.
    | Apr. 29, 2015, 10:01 AM | 2 Comments
  • Jan. 27, 2015, 10:54 AM
    • Following a strong Q4 highlighted by a December guidance hike, Corning (GLW +1.7%) expects LCD glass demand to be down slightly Q/Q in Q1, in-line with seasonality. Price declines are again expected to be moderate.
    • Thanks to the Samsung deal and better-than-expected demand (lifted by enthusiasm for 4K TVs and larger sets), Corning's Display Technologies sales rose 69% Y/Y in Q4 to $1.1B. The segment's core earnings rose 26%.
    • North American fiber-to-the-home buildouts fueled a 12% increase in Optical Communications sales to $676M, beating guidance for mid-single digit growth and contributing to the revenue beat. 10%+ growth is also expected in Q1.
    • Specialty Materials sales (Gorilla Glass-driven) rose 12% to $319M, also better than expected. Corning reports seeing "strong consumer and manufacturer interest" in just-launched Gorilla Glass 4. ~10% Q1 growth is expected for the division.
    • Environmental Technologies sales +5% to $238M, driven by demand for light and heavy-duty emissions products. Life Sciences sales +2% to $215M. Both divisions are expected to see roughly flat Y/Y sales in Q1.
    • Gross margin rose to 41.4% from 39.3% a year earlier. Adjusting for one-time events, SG&A spend rose 22% to $380M, and R&D spend 24% to $209M. $183M was spent on buybacks.
    • A weak yen lowered revenue by $198M. Corning plans to spend $1.3B-$1.4B in 2015 on capex, up from 2014's $1.1B.
    • Shares are higher in spite of a 1.7% drop for the S&P.
    • Q4 results, PR
    | Jan. 27, 2015, 10:54 AM
  • Dec. 18, 2014, 9:20 AM
    • Believing TV demand will be strong in the coming years as consumers upgrade their first flat-panel sets, Citi has upgraded Corning (NYSE:GLW) to Buy and hiked its target by $4 to $25.
    • Last week, Corning hiked its Q4 LCD glass volume and pricing guidance, while citing stronger-than-expected LCD TV market demand. Both larger screen sizes and the adoption of 4K sets has been boosting demand.
    • NPD recently observed 32" and smaller TV sets accounted for the less than half of Thanksgiving week sales for the first time. Demand for larger sets rose sharply, with 50-64" sets seeing more sales than 33-49" sets. 65" and larger sets managed to account for over 5% of volume.
    • Stronger demand for larger sets also benefits LCD panel suppliers AU Optronics (NYSE:AUO) and LG Display (NYSE:LPL).
    • Yesterday: Dow Corning shuttering plant
    | Dec. 18, 2014, 9:20 AM | 1 Comment
  • Dec. 3, 2014, 2:41 PM
    • Corning (GLW +2.6%) has hiked its quarterly dividend by 20% to $0.12/share. That's good for a 2.2% yield at current levels. The glass giant's Q1 dividend will be payable on March 31 to shareholders on record as of Feb. 27.
    • Corning has also authorized a new $1.5B buyback. It launched a $2B buyback a year ago, and later used it to strike a $1.25B accelerated share repurchase deal with Citi.
    • The announcement comes a day after Corning announced a deal to buy Samsung's optical fiber/cable unit, a move that bolsters the Asian presence of Corning's already-sizable optical fiber business. The company's optical communications sales totaled $698M in Q3, +7% Y/Y and equal to 26% of total revenue.
    • Shares have rallied following the dividend/buyback announcement, and aren't far from a 52-week high of $22.37.
    | Dec. 3, 2014, 2:41 PM | 14 Comments
  • Nov. 17, 2014, 5:40 PM
    • Top gainers, as of 5:15 p.m.: AVB +4.9%. CLVS +3.1%. GLW +2.5%. ACT +2.3%. DHX +2.1%.
    • Top losers, as of 5:15 p.m.: OME -19.2%. URBN -4.8%. FOLD -3.4%. RMTI -3.2%. PF -2.7%.
    | Nov. 17, 2014, 5:40 PM
  • Nov. 12, 2014, 12:34 PM
    • Corning (GLW -0.5%) and Zhone (ZHNE +5.4%) plan to co-market a network solution for enterprises that pairs Corning's fiber connectivity and distributed antenna hardware with Zhone's FiberLAN passive optical network (PON) gear.
    • The companies declare the offering, which leverages Corning's ONE Wireless enterprise network platform, will allow companies to "deploy an integrated fiber network solution that includes both the electronics and passive fiber optic components in one converged solution."
    • Zhone is rallying following the news. Corning's optical division, best known for its optical fiber offerings, accounted for a quarter of the company's Q3 sales.
    | Nov. 12, 2014, 12:34 PM
  • Oct. 28, 2014, 7:18 AM
    • Corning (NYSE:GLW): Q3 EPS of $0.40 beats by $0.03.
    • Revenue of $2.65B (+25.6% Y/Y) beats by $20M.
    • Shares +1.17% PM.
    | Oct. 28, 2014, 7:18 AM | 2 Comments
  • Oct. 23, 2014, 5:01 PM
    • Along with its Q3 results, Maxwell (NASDAQ:MXWL) has announced it's partnering with Corning (NYSE:GLW) to develop new ultracapacitor technologies.
    • The companies declare "Maxwell's expertise in ultracapacitor cell design, manufacturing processes and market-leading capacitive energy storage product designs" will be paired with  "Corning's expertise in high-performance materials, analytical capabilities and technology innovations." They aim to address tech challenges related to "energy density, lifetime, operating environment, form factor and cost."
    • MXWL +14.9% AH thanks to the partnership, its Q3 beat, and its Q4 guidance: The company expects revenue to be up "as much as" 20%-25% Q/Q. That implies a range of $49.9M-$52M, well above a $44.4M consensus. Strong demand from the Chinese hybrid bus and wind energy markets are contributing to the growth.
    | Oct. 23, 2014, 5:01 PM | 4 Comments
  • Jul. 29, 2014, 9:29 AM
    • Corning's (NYSE:GLW) Q2 gross margin was 41.6%, +60 bps Q/Q but -300 bps Y/Y and driving the quarter's EPS miss.
    • Contributing to the margin pressure: specialty materials (Gorilla Glass) sales, which tend to carry higher margins, were roughly flat Y/Y at $298M. Gorilla Glass sales missed expectations due to soft retail demand for smartphones/tablets and "lower-than-expected sales for planned new models." That could be a reference to Apple's sapphire production ramp ahead of the iPhone 6 launch.
    • On the other hand, LCD glass division sales (boosted by the Samsung deal) rose 62% Y/Y to $1.1B, with glass volumes growing by a low-teens % Q/Q (better than expected). Price declines were moderate, as expected.
    • Optical communications (fiber) sales were also better than expected, rising 14% to $601M. Environmental Technologies grew 25% to $285M thanks to demand for diesel emission control products, and life sciences rose 2% to $223M.
    • Q3 guidance: LCD glass volumes will rise by a mid-single digit % Q/Q, with price declines moderating further; optical will grow by a mid-single digit % Y/Y, environmental will grow 20%-25% Y/Y; specialty materials will grow 10% Q/Q; life sciences will be up slightly Y/Y.
    • With revenue up 25% Y/Y, SG&A spend rose 20% Y/Y to $318M, and R&D spend 16% to $208M. $200M was spent on buybacks. Corning has cut its full-year capex guidance by $200M to $1.3B.
    • Q2 results, PR
    | Jul. 29, 2014, 9:29 AM | 3 Comments
Company Description
Corning Inc is engaged in manufacturing of specialty glass and ceramics. The Company's segments are Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences.