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Corning (GLW)
NYSE:GLW
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Corning
(NYSE:GLW)71Outperform
Positive Factors
Financial Performance
Corning reported strong results for F4Q, with revenue of $3.87bn (above guidance of $3.75bn) and EPS of $0.57 (top end of guided range).
Optical Segment Growth
The optical business continues to see strong AI-related demand from enterprise customers.
Negative Factors
Market Expectations
Expectations dampened as Project Springboard targets have already been surpassed by the Street, creating a challenging setup for future revisions.
Corning (GLW) vs. S&P 500 (SPY)
Market Cap
$39.82B
Dividend Yield2.41%
Average Volume (3M)6.35M
Price to Earnings (P/E)79.8
Beta (1Y)1.11
Revenue Growth4.21%
EPS Growth-13.56%
CountryUS
Employees56,300
SectorBasic Materials
Sector Strength56
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.58
Shares Outstanding856,564,000
10 Day Avg. Volume5,758,074
30 Day Avg. Volume6,352,935
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.15
Price to Cash Flow (P/CF)16.60
P/FCF Ratio16.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$56.80Price Target Upside20.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Corning Business Overview & Revenue Model
Company DescriptionCorning, Inc. develops and manufactures specialty glass and ceramics. It provides glass for notebook computers, flat panel desktop monitors, display televisions, and other information display applications; carrier network and enterprise network products for the telecommunications industry; ceramic substrates for gasoline and diesel engines in automotive and heavy duty vehicle markets; laboratory products for the scientific community and specialized polymer products for biotechnology applications; advanced optical materials for the semiconductor industry and the scientific community; and other technologies. It operates through the following business segments: Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials and Life Sciences. The Display Technologies segment manufactures glass substrates for high performance displays, including organic light-emitting diode and liquid crystal displays that are used primarily in televisions, notebook computers and flat panel desktop monitors. The Optical Communications segment is classified into two main product groupings: carrier and enterprise network. The carrier network group consists primarily of products and solutions for optical-based communications infrastructure for services such as video, data and voice communications. The enterprise network group consists primarily of optical-based communication networks sold to businesses, governments and individuals for their own use. The Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile and stationary applications around the world. The Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics and fluoride crystals to meet demand for unique customer needs. The Life Sciences segment develops, manufactures and supplies scientific laboratory products. The company was founded by Amory Houghton Sr. in 1851 and is headquartered in Corning, NY.
How the Company Makes MoneyCorning Incorporated generates revenue through a diversified portfolio of business segments. Its Display Technologies segment is a significant revenue driver, primarily selling glass substrates for flat panel displays used in televisions, laptops, and smartphones. The Optical Communications segment provides fiber optic cables and connectivity solutions, benefiting from the growing demand for high-speed data transmission and network infrastructure. The Specialty Materials segment includes products like Gorilla Glass, which is widely used in consumer electronics for its durability and strength. The Environmental Technologies segment offers ceramic substrates and filters for emissions control in vehicles, aligning with global regulatory standards for pollution reduction. Lastly, the Life Sciences division supplies laboratory products and equipment to the healthcare and pharmaceutical industries. Corning's earnings are further supported by strategic partnerships and collaborations with leading technology companies, enabling innovation and access to new markets.
Corning Financial Statement Overview
Summary
Corning's financial statements reflect a stable yet challenging financial environment. While profitability metrics indicate operational efficiency, the company faces headwinds in maintaining high net profit margins and generating robust returns on equity. The balance sheet is strong, with a healthy leverage position, but cash flow metrics suggest potential liquidity challenges. Continued focus on cost management and strategic investments could improve financial performance in the future.Income Statement
Corning's income statement shows a mixed financial performance. The TTM gross profit margin stands at 32.25%, indicating solid profitability, though it has declined from previous years. The net profit margin for the TTM is 3.86%, a decrease from 4.61% in the prior year, suggesting challenges in controlling costs. Revenue growth is modest at 4.21% from the previous year, indicating moderate expansion but lower than historical growth rates. The EBIT and EBITDA margins for the TTM are 9.92% and 14.54% respectively, reflecting operational efficiency but also highlighting areas for improvement in profitability.65
Positive
Balance Sheet
Corning's balance sheet exhibits a stable financial position. The debt-to-equity ratio is 0.68, showing a reasonable level of leverage. The return on equity for the TTM is low at 4.73%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 38.52%, indicating a strong capital base and financial stability. Overall, the balance sheet suggests a balanced approach to debt and equity, though increased profitability could enhance shareholder value.70
Positive
Cash Flow
The cash flow statement reveals some concerns regarding cash generation. The free cash flow growth rate is 58.37%, a significant improvement from the previous year, but largely due to lower capital expenditures. The operating cash flow to net income ratio is strong at 3.83, indicating efficient cash conversion. However, the free cash flow to net income ratio is 1.92, suggesting limited free cash flow relative to net income. This highlights potential constraints on cash available for expansion or debt reduction.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.12B | 12.59B | 14.19B | 14.08B | 11.30B | Gross Profit |
| 4.28B | 3.93B | 4.51B | 5.06B | 3.53B | EBIT |
| 1.14B | 890.00M | 1.44B | 2.11B | 509.00M | EBITDA |
| 2.49B | 2.51B | 3.36B | 3.77B | 2.87B | Net Income Common Stockholders |
| 506.00M | 581.00M | 1.32B | 1.91B | 512.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.77B | 1.78B | 1.67B | 2.15B | 2.67B | Total Assets |
| 27.73B | 28.50B | 29.50B | 30.14B | 30.77B | Total Debt |
| 8.09B | 8.48B | 7.82B | 7.04B | 8.00B | Net Debt |
| 6.32B | 6.71B | 6.15B | 4.90B | 5.32B | Total Liabilities |
| 16.66B | 16.63B | 17.22B | 17.60B | 17.33B | Stockholders Equity |
| 10.69B | 11.55B | 12.01B | 12.33B | 13.26B |
| Cash Flow | Free Cash Flow | |||
| 974.00M | 615.00M | 1.01B | 1.77B | 803.00M | Operating Cash Flow |
| 1.94B | 2.00B | 2.62B | 3.41B | 2.18B | Investing Cash Flow |
| -744.00M | -1.00B | -1.35B | -1.42B | -1.31B | Financing Cash Flow |
| -1.16B | -883.00M | -1.65B | -2.45B | -729.00M |
Corning Technical Analysis
Negative
47.04
Price Trends
49.73
Negative
48.49
Negative
44.32
Positive
Market Momentum
-0.74
Positive
37.05
Neutral
12.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLW, the sentiment is Negative. The current price of 47.04 is below the 20-day moving average (MA) of 50.88, below the 50-day MA of 49.73, and above the 200-day MA of 44.32, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 12.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLW.
Corning Risk Analysis
Corning disclosed 20 risk factors in its most recent earnings report. Corning reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Corning Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.92B | 31.36 | 13.74% | 1.10% | 12.36% | 9.70% | |
73 Outperform | $10.36B | ― | 8.59% | ― | 1.30% | -36.24% | |
72 Outperform | $26.99B | 32.62 | 6.74% | 3.61% | -1.57% | 84.85% | |
71 Outperform | $39.82B | 79.84 | 4.74% | 2.41% | 4.21% | -13.56% | |
65 Neutral | $14.86B | 51.00 | 8.25% | 0.41% | -8.02% | 61.14% | |
64 Neutral | $3.69B | 21.90 | 7.32% | 2.53% | 3.11% | 123.46% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
GLW
Corning
47.04
15.28
48.11%
ENTG
Entegris
102.38
-42.48
-29.32%
IP
International Paper Co
52.51
17.96
51.98%
AVNT
Avient
42.02
1.74
4.32%
OLED
Universal Display
152.76
-18.46
-10.78%
APG
APi Group
37.13
-2.12
-5.40%
Corning Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -7.66% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance across key segments, particularly in Optical Communications and Display Technologies, with significant sales and EPS growth. Despite some challenges in Environmental Technologies and potential external risks, the overall outlook remains positive with the company tracking ahead of its strategic goals.Highlights
Record Sales and EPS Growth
In Q4 2024, Corning grew sales by 18% year-over-year to a record $3.9 billion and increased EPS by 46% to $0.57. Operating margin expanded by 220 basis points to 18.5%.
Strong Free Cash Flow
Corning generated $1.25 billion in free cash flow for 2024, up 42% year-over-year.
Optical Communications Growth
Optical Communications sales were $1.37 billion in Q4, up 51% year-over-year, with Enterprise business growing 93% in the same period.
Display Technologies Performance
Fourth quarter sales in Display Technologies were $971 million, up 12% year-over-year, with net income growth driven by larger average screen sizes.
Springboard Plan Success
Corning added $2.4 billion to its annualized sales run rate in year one of its Springboard plan, tracking ahead of the target to add more than $3 billion by 2026.
Lowlights
Environmental Technologies Decline
Sales in Environmental Technologies were down 7% year-over-year in Q4 due to weaker light-duty and heavy-duty markets in Europe.
Challenges in Specialty Materials
Although Q4 sales in Specialty Materials were up 9% year-over-year, they were down 6% sequentially.
Potential Risks from BEAD Program and Tariffs
Uncertainty around the BEAD program and potential impacts from new U.S. tariffs could pose future risks, although Corning is not currently seeing significant impacts.
Company Guidance
During the Corning Incorporated Quarter Four 2024 earnings call, guidance for the upcoming quarters was provided with a strong emphasis on continued growth and the successful implementation of the Springboard plan. The company reported year-over-year sales growth of 18% to $3.9 billion and a 46% increase in EPS to $0.57, alongside an expansion of the operating margin by 220 basis points to 18.5%. Corning aims to achieve more than $3 billion in annualized sales and a 20% operating margin by the end of 2026. For the first quarter of 2025, the company expects sales to grow 10% year-over-year to approximately $3.6 billion, with core EPS rising by approximately 30% to a range of $0.48 to $0.52. The company also highlighted its achievements in Optical Communications and Display Technologies as key drivers of outperformance against its high-confidence plan.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.