Corning Incorporated Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Results: Sales of $3.5 billion (consistent with prior quarter expectations but at low end in Optical and Display). Core EPS $0.45. Gross margin expanded 80 basis points sequentially to 37% (and +340 bps vs. Q4 2022) despite flat sales, driven by pricing actions in Display and productivity. Free cash flow reached $466 million (+$156 million sequentially and +$211 million or +83% year-over-year on lower sales), supported by inventory reductions and lower CapEx.

Segment Performance

  • Optical Communications: Sales $918 million (-14% sequentially) due to carriers drawing down inventory. Net income $91 million (down sequentially on lower volumes). Long-term growth drivers (broadband, 5G, cloud/AI) remain intact; shipments currently ~30% below 7.3% CAGR trend line.
  • Display Technologies: Sales $972 million; net income $242 million (+16% sequentially) reflecting double-digit price increases. Year-over-year sales +42%, net income +81%. Panel maker utilization declined exiting Q3; expected to fall further in Q4 (glass market volume down low teens sequentially).
  • Specialty Materials: Sales $563 million (+33% sequentially) on Gorilla Glass launches and strong Advanced Optics demand. Net income $72 million (up sequentially on volume and premium cover materials).

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Welcome to the Corning Incorporated Quarter Three 2023 Earnings Call. [Operator Instructions] It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations. Ann Nicholson: Thank you, and good morning. And welcome to Corning’s third quarter 2023 earnings call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; Ed Schlesinger, Executive Vice President and Chief Financial Officer; and Jeff Evenson, Executive Vice President and Chief Strategy Officer. I’d like to remind you that today’s remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company’s financial reports. You should also note that we will be discussing our consolidated results using core performance measures, unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business. Third quarter GAAP EPS reflected restructuring and asset write-off charges, realized gains and unrealized non-cash mark-to-market losses on currency hedging contracts and non-cash mark-to-market adjustments associated with the company’s Japanese yen denominated debt. As a reminder, mark-to-market accounting has no impact on our cash flow. A reconciliation of core results t

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional