The 10-second takeaway
For the quarter ended March 31 (Q1), Corning missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share was unchanged. GAAP earnings per share grew.
Gross margins were steady, operating margins grew, net margins grew.
Corning reported revenue of $1.81 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $1.96 billion on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $1.92 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 $0.30. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS of $0.30 were the same as the prior-year quarter. GAAP EPS of $0.33 for Q1 were 10% higher than the prior-year quarter's $0.30 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 42.4%, much about the same as the prior-year quarter. Operating margin was 18.0%, 10 basis points better than the prior-year quarter. Net margin was 27.2%, 310 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $8.38 billion. The average EPS estimate is $1.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,318 members out of 5,443 rating the stock outperform, and 125 members rating it underperform. Among 961 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 938 give Corning a green thumbs-up, and 23 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 $14.07.
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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 recommends Corning. The Motley Fool owns 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.