- Corning Inc (NYSE:GLW) reported first-quarter FY22 core sales growth of 15% year-on-year to $3.7 billion, above the consensus of $3.57 billion.
- Display Technologies sales grew 11% Y/Y to $959 million, driven by a favorable glass pricing environment.
- Optical Communications sales rose 28% Y/Y to $1.2 billion as 5G, broadband, and cloud computing continue to drive growth.
- Specialty Materials sales grew 9% Y/Y to $493 million. Life Sciences sales rose 3% Y/Y to $310 million.
- Environmental Technologies sales declined 7% Y/Y to $409 million, reflecting lower production levels in the automotive industry due to the semiconductor chip shortage.
- Margin: The core gross margin remained flattish Q/Q at 36.6%.
- Core EPS of $0.54 beat the consensus of $0.50.
- Corning generated $171 million in free cash flow.
- Chair and CEO Wendell P. Weeks said, "We are off to an outstanding start in 2022, driven by broad-based strength across our businesses – led by 28% year-over-year sales growth in Optical Communications and continued favorable pricing in Display."
- "Looking ahead, demand for Corning content has never been greater. We expect strong top- and bottom-line growth this year, as we advance innovations and remain focused on pricing, capital efficiency, and cash generation," Weeks continued.
- Outlook: Corning sees Q2 FY22 core sales of $3.7 billion - $3.9 billion, above the consensus of $3.68 billion. It sees core EPS of $0.54 - $0.59 versus the consensus of $0.55.
- Corning sees FY22 sales exceeding $15 billion (prior view: sales of ~$15 billion) versus the consensus of $15.03 billion.
- Price Action: GLW shares traded higher by 3.85% at $35.75 on the last check Tuesday.
