Corning Beats on Both Top and Bottom Lines

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Corning (NYS: GLW) reported earnings on Jan. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Corning beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.


Gross margins dropped, operating margins expanded, net margins contracted.

Revenue details
Corning recorded revenue of $2.15 billion. The 17 analysts polled by S&P Capital IQ expected a top line of $2.07 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.89 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.19 for Q4 were 39% lower than the prior-year quarter's $0.31 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.3%, 140 basis points worse than the prior-year quarter. Operating margin was 19.3%, 40 basis points better than the prior-year quarter. Net margin was 13.2%, 1,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.01 billion. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $8.42 billion. The average EPS estimate is $1.34.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,265 members out of 5,386 rating the stock outperform, and 121 members rating it underperform. Among 1,043 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,026 give Corning a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Corning is outperform, with an average price target of $14.62.

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The article Corning Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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