Corning Beats Estimates Yet Again

Corning (NYS: GLW) reported earnings today. 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 improved, and earnings per share dropped significantly.

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

Revenue details
Corning logged revenue of $1.9 billion. The 16 analysts polled by S&P Capital IQ expected to see revenue of $1.8 billion. Sales were 6.9% higher than the prior-year quarter's $1.8 billion


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.33. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.33 per share on the same basis. GAAP EPS of $0.31 for Q4 were 53% lower than the prior-year quarter's $0.66 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.7%, 20 basis points better than the prior-year quarter. Operating margin was 19.1%, 130 basis points better than the prior-year quarter. Net margin was 26.0%, 3,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.9 billion. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $8.2 billion. The average EPS estimate is $1.68.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,897 members out of 5,007 rating the stock outperform, and 115 members rating it underperform. Among 1,070 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,054 give Corning a green thumbs-up, and 16 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 $17.14.

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At the time thisarticle was published 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. The Motley Fool owns shares of Corning. Motley Fool newsletter services have recommended buying shares of Corning. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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