Corning: Profitability To Decline Slightly On Sequential Basis

Corning Incorporated (GLW) said its third quarter core earnings per share increased 30% year over year. Core sales were up 21%, driven by strong growth in Optical Communications. Looking forward, Corning noted that its profitability is expected to decline slightly on a sequential basis due to further reductions in automotive industry-related sales and lower Corning Gorilla Glass sales following large product launches by customers. The company said it is on track to reach $14 billion in sales and over $2 in earnings per share for 2021.

Third quarter core earnings per share was $0.56 compared to $0.43, prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.58, for the quarter. Analysts’ estimates typically exclude special items. GAAP net income declined to $371 million or $0.43 per share from $427 million or $0.48 per share.

Core sales were $3.64 billion, up 21%. Analysts expected revenue of $3.63 billion, for the quarter. The company said lower production levels in the automotive industry due to the semiconductor chip shortage reduced sales by approximately $40 million and earnings per share by $0.02.

In Display Technologies, sales were $956 million, up 16% year over year. In Optical Communications, sales were $1.13 billion, up 24%.

For the fourth quarter, Corning projects core sales to be in the range of $3.5 billion to $3.7 billion with core earnings per share in the range of $0.50 to $0.55. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.58 on revenue of $3.64 billion.

Shares of Corning were down 3% in pre-market trade on Tuesday.

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