The 10-second takeaway
For the quarter ended June 30 (Q2), Corning missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Corning chalked up revenue of $1.91 billion. The 16 analysts polled by S&P Capital IQ expected to see a top line of $2.01 billion on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $2.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.31 per share. GAAP EPS of $0.30 for Q2 were 36% lower than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 250 basis points worse than the prior-year quarter. Operating margin was 16.5%, 490 basis points worse than the prior-year quarter. Net margin was 24.2%, 1,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $8.13 billion. The average EPS estimate is $1.34.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,206 members out of 5,326 rating the stock outperform, and 120 members rating it underperform. Among 903 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 881 give Corning a green thumbs-up, and 22 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 $15.64.
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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 of Motley 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.