The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Corning met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Corning booked revenue of $2.04 billion. The 17 analysts polled by S&P Capital IQ expected to see a top line of $2.02 billion on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $2.08 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 $0.34. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.32 per share. GAAP EPS of $0.35 for Q3 were 31% lower than the prior-year quarter's $0.51 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 43.1%, 400 basis points worse than the prior-year quarter. Operating margin was 19.4%, 910 basis points worse than the prior-year quarter. Net margin was 25.6%, 1,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $8.08 billion. The average EPS estimate is $1.28.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,192 members out of 5,312 rating the stock outperform, and 120 members rating it underperform. Among 926 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 906 give Corning a green thumbs-up, and 20 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 $14.68.
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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 recommend 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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