CORNING, N.Y. - Corning Incorporated (NYSE:GLW) reported first-quarter financial results that surpassed analyst expectations, sending its shares up 2.08% in premarket trading. The materials science company announced adjusted earnings per share (EPS) of $0.38, which was $0.03 higher than the consensus estimate of $0.35. Revenue for the quarter also exceeded forecasts, coming in at $3.26 billion against an anticipated $3.12 billion.
The company's performance in the first quarter represents a positive start to the year, with management indicating that they expect sales to hit the lowest point in Q1 and to see an upward trajectory throughout 2024. Corning's chairman and chief executive officer, Wendell P. Weeks, highlighted the strong results at the upper end of their guidance and noted improving market conditions as a key factor.
Despite a year-over-year (YoY) decline in GAAP and core sales of 6% and 3%, respectively, Corning managed to improve profitability. This was attributed to effective pricing and productivity improvement actions, which led to a 180 basis point increase in GAAP gross margin and a 160 basis point increase in core gross margin compared to the same quarter last year.
Looking ahead, Corning provided guidance for the second quarter of 2024, forecasting core sales to grow to approximately $3.4 billion, with core EPS in the range of $0.42 to $0.46. This guidance suggests a midpoint of $0.44 for EPS, which aligns with analyst consensus estimates. The revenue forecast of $3.4 billion for the upcoming quarter also surpasses the consensus estimate of $3.33 billion.
The company's executive vice president and chief financial officer, Ed Schlesinger, expressed confidence in Corning's stronger profitability and cash flow base, which he attributed to strategic pricing increases and productivity improvements. He also emphasized the company's expectation to build upon the first quarter's performance in Q2.
Corning's strategic focus remains on driving profitable multiyear growth by developing products that respond to significant transformations in various industries, including optical communications, mobile consumer electronics, display, automotive, solar, semiconductor, and life sciences.
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