Corning (GLW) Q1 2025 Earnings Call April 29, 2025 01:48 PM ET Speaker0 Thank you for standing by, and welcome to the Corning Incorporated First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. It is my pleasure to introduce to you Ann Nicholson, Vice President of Investor Relations. Speaker1 Thank you, Carmen, and good ...

First-Quarter 2025 Investor Call Corning Reports First-Quarter 2025 Financial Results April 29, 2025 1 Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or information and contain words such as "will," "believe," "anticipate," "expect," "intend," "plan," "seek," "see," "would," "target," "estimate," "forecast" or similar expressions are forward-looking statements. These forward-looking statements are made ...

Corning Incorporated (GLW) reported impressive first-quarter 2025 results, wherein adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate. The advanced glass substrates producer witnessed revenue expansion year over year, driven by healthy sales across multiple end markets. The growing adoption of its advanced products for Gen-AI (generative artificial intelligence) applications is a tailwind. Its U.S.-made solar products are also gaining solid market traction.Net Income of GLWOn a ...

For the quarter ended March 2025, Corning (GLW) reported revenue of $3.68 billion, up 12.9% over the same period last year. EPS came in at $0.54, compared to $0.38 in the year-ago quarter.The reported revenue represents a surprise of +3.87% over the Zacks Consensus Estimate of $3.54 billion. With the consensus EPS estimate being $0.50, the EPS surprise was +8.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

Corning (GLW) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8%. A quarter ago, it was expected that this specialty glass maker would post earnings of $0.56 per share when it actually produced earnings of $0.57, delivering a surprise of 1.79%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - Company reported a 13% year-over-year sales growth to $3.7 billion in Q1 2025, with EPS increasing by 42% to $0.54 [5][32] - Operating margin expanded by 250 basis points year-over-year to 18% [5][32] - Guidance for Q2 2025 anticipates sales of approximately $3.85 billion and EPS in the range of $0.55 to $0.59, reflecting a year-over-year EPS growth of about 21% [6][32] Business Line Data and Key Metrics Changes - Optical communications sales reached $1.4 billion, up 46% year-over-year, with net income increasing by 101% [35] - Enterprise sales grew by 106% year-over-year to $705 million, driven by demand for new Gen AI products [35] - Display segment sales were $905 million, up 4% year-over-year, with a net income margin of 26.9% [37] - Specialty materials sales increased by 10% year-over-year to $501 million, with net income growing by 68% [39] - Automotive glass sales were $440 million, down 10% year-over-year, primarily due to softness in European markets [42] Market Data and Key Metrics Changes - Company noted strong demand for US-made innovations, particularly in optical communications and solar sectors [14][26] - In the solar market, the company expects to grow from a $1 billion business in 2024 to $2.5 billion by 2028, driven by increased energy demand and favorable government policies [26][28] Company Strategy and Development Direction - The company is focused on its SpringBoard plan, aiming to add over $4 billion in annualized sales and achieve a 20% operating margin by the end of 2026 [9][51] - The strategy includes leveraging US manufacturing capabilities to mitigate tariff impacts and enhance customer relationships [10][14] - The company is also emphasizing innovation in Gen AI and solar technologies as key growth drivers [22][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering the SpringBoard plan even in the event of a macroeconomic downturn, citing a risk-adjusted approach [9][21] - The company is seeing early signs of stronger demand for US-made products, which is expected to positively impact financial performance [14][26] - Management highlighted that the direct impact of tariffs is minimal, with proactive measures in place to optimize supply chains [8][14] Other Important Information - The company plans to invest approximately $1.3 billion in capital expenditures and expects to generate significant free cash flow [45] - Share buybacks are a priority for returning cash to shareholders, with $100 million repurchased in Q1 2025 [49][92] Q&A Session Summary Question: Pricing power in uncertain markets - Management noted successful price increases post-pandemic and indicated strong pricing power in solar and optical segments due to increased customer interest and unique product offerings [54][55] Question: Temporary capacity ramp costs - The costs associated with ramping up capacity are primarily operational rather than capital expenditures, with expectations of normalization as production scales [59][60] Question: Visibility in Gen AI orders - Recent dialogues with major hyperscaler customers reinforced growth estimates, with a focus on increasing demand for new product sets [64] Question: Supply constraints in optical segment - Management acknowledged supply constraints and indicated potential for further pricing strength in the optical segment [69][70] Question: Customer conversations regarding tariffs and recession - Management reported increasing demand for US manufacturing and long-term commitments from customers, indicating a positive outlook despite tariff uncertainties [76][78] Question: End market demand in display segment - The display market is expected to remain flat, with growth driven by increasing screen sizes and stable glass demand [87][90] Question: Aggressiveness of share buybacks - Management confirmed ongoing share buybacks while maintaining a strong balance sheet, with plans to continue this strategy [92][93]

Exhibit 99.1 FOR RELEASE – April 29, 2025 (1) First-quarter GAAP results: Sales were $3.45 billion, EPS was $0.18, and operating margin was 12.9%. First-quarter core results: Sales were $3.7 billion, EPS was $0.54, and operating margin was 18%. CORNING, N.Y. — Corning Incorporated (NYSE: GLW) today announced its first-quarter 2025 results and provided its outlook for second-quarter 2025. Wendell P. Weeks, chairman and chief executive officer, said, "Today, we announced strong first-quarter results that exce ...

Group 1 - Corning Incorporated (GLW) is positioned to benefit from the growth of AI infrastructure, driven by the increase in generative AI and hyperscale data centers [1] - The demand for AI infrastructure is a significant factor contributing to Corning's market opportunities [1] Group 2 - The investment approach at Henriot Capital emphasizes a quant-driven model that minimizes human bias in stock selection [1] - The strategy involves buying based on model recommendations and conducting further research afterward [1]

Core Viewpoint - Corning Incorporated is expected to report first-quarter 2025 results on April 29, with anticipated revenue growth driven by strong demand and product innovation [1] Group 1: Product Innovations and Collaborations - Samsung Electronics has chosen Corning's Gorilla Armor 2 for its Galaxy S25 Ultra devices, highlighting the ongoing collaboration and commitment to innovation between the two companies [2] - Corning launched GlassWorks AI solutions to support fiber densification in AI-native data centers, allowing for increased data center capacity without significant infrastructure changes [3] - The introduction of Corning Gorilla Glass Ceramic enhances mobile device safety, showing improved drop performance compared to competitors, which is expected to generate additional revenue [4] Group 2: Revenue Estimates and Growth Drivers - The Optical Communication segment's revenue estimate is $1.21 billion, up from $930 million year-over-year, driven by the adoption of innovative optical connectivity products for generative AI applications [5] - The Display Technologies segment is estimated to generate $942.2 million, reflecting an 8.1% year-over-year growth, while the Specialty Materials segment is projected at $492.2 million, up 8.4% year-over-year [6] - Overall, the total revenue estimate for the March quarter is $3.45 billion, an increase from $3.26 billion in the prior-year quarter, with adjusted earnings per share expected to rise to 50 cents from 38 cents [6]

Group 1 - Corning (NYSE: GLW) is involved in various sectors including optical fiber for data centers, protective coatings for smartphones, and materials for microscopes and catalytic filters in cars [1] - The company has a diverse product portfolio that supports critical infrastructure and technology applications [1] Group 2 - The article emphasizes the importance of well-researched commentary and insights into high-growth technology equities, undervalued blue-chip stocks, and niche market opportunities [1] - The goal is to assist readers in navigating complex global markets with a focus on a risk-aware and fundamentally driven investment approach [1]