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.
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 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.
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.
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.
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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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. TMFDisclosureHere