Corning Earnings: Four Straight Quarters of Profit Declines
S&P 500 (NYSE:SPY) component Corning Inc. (NYSE:GLW) reported its results for the second quarter. Corning provides glass for LCD televisions, computer monitors, and other information display applications as well as optical fiber and cable products.
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Corning Inc. Earnings Cheat Sheet
Results: Net income for the communications components fell to $462 million (30 cents per share) vs. $755 million (47 cents per share) a year earlier. This is a decline of 38.8% from the year-earlier quarter.
Revenue: Fell 4.8% to $1.91 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Corning Inc. fell short of the mean analyst estimate of 32 cents per share. It fell short of the average revenue estimate of $2.02 billion.
Quoting Management: Reflecting on Corning’s second-quarter performance, Wendell P. Weeks, chairman, chief executive officer, and president, said, “We had a solid second quarter in terms of sales and earnings performance. We achieved much more moderate price declines for our LCD glass as set forth in our goals that we shared in February. Additionally, LCD glass retail and supply chain market statistics were generally in line with our expectations. As a whole, our other businesses grew 2% year-over-year.”
The company has now seen net income fall in each of the last three quarters. In the first quarter, net income fell 38.2% from the year earlier, while the figure fell 53% in the fourth quarter of the last fiscal year.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.
Revenue has declined for two quarters in a row. In the first quarter, revenue declined 0.2% to $1.92 billion from the year-earlier quarter.
Looking Forward: The average estimate for the third quarter is steady at 36 cents a share. The average estimate for the fiscal year has seen a bump from $1.34 per share sixty days ago to $1.35.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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