On Tuesday, Shares of Corning Incorporated (NYSE: GLW) gained 3.31% to $35.56. The stock opened its trade at $36.20 and after floating in a price range of $35.23 to $36.75, the stock grabbed the investor’s attention and traded 8,464,325 shares as compared to its average daily volume of 5.10M shares. The stock’s institutional ownership stands at 70.00%. Corning Incorporated GLW Stated impressive first-quarter 2022 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
On a GAAP basis, net income in the quarter was $581.00M or 68 cents per share compared with $599.00M or 67 cents per share in the prior-year quarter. Core net income increased to $465.00M or 54 cents per share from $402.00M or 45 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 5 cents.
Quarterly GAAP net sales increased 11.90 percent year over year to $3,680.00M, driven by strong growth in Optical Communications, Display Technologies and Hemlock’s solar materials. Core sales grew to $3,744.00M from $3,263.00M. The top line beat the consensus estimate of $3,563.00M.
Net sales in Optical Communications increased 27.90 percent year over year to $1,198.00M as network operators increased capital spending to address the demand for 5G, broadband and the cloud. The segment’s net income was $166.00M compared with $111.00M in the prior-year quarter.
Net sales in Display Technologies were $959.00M compared with $863.00M in the prior-year quarter, thanks to the favorable pricing. The segment’s net income was $236.00M compared with $213.00M in the year-ago quarter. The company expects glass prices to be up slightly sequentially in the second quarter.
Specialty Materials’ net sales were up 9.30 percent year over year to $493.00M. The company is witnessing significant demand for its premium cover materials and Advanced Optics products, backed by strength in the IT, mobile device and semiconductor markets. The segment’s net income was $75.00M compared with $91.00M a year ago.
Environmental Technologies’ net sales declined 7.30 percent year over year to $409.00M as component shortages limited automotive production. The segment’s net income was $74.00M, stable year over year.
Net sales in Life Sciences were up 3.30 percent year over year to $310.00M. The segment’s net income declined to $42.00M from $48.00M a year ago. The decline was due to COVID-related operational challenges in the first half of the quarter, which adversely impacted output.
In Hemlock and Emerging Growth Businesses, net sales increased 38.40 percent year over year to $375.00M. This was primarily driven by increased sales of polysilicon. Demand for Hemlock’s solar materials grew while sales of semiconductor materials remained strong. Automotive Glass Solutions and Corning Pharmaceutical Technologies also contributed to growth. The segment’s net loss was $8.00M compared with a net loss of $24.00M a year ago.
Cost of sales increased 12.30 percent year over year to $2,3970M. Gross profit improved to $1,283.00M from $1,1560M. Core gross profit was $1,3700M compared with $1,167.00M in the prior-year quarter, with respective margins of 36.60 percent and 35.80 percent. Operating income was $570.00M compared with $502.00M a year ago.
Cash Flow & Liquidity
During first-quarter 2022, Corning generated $534.00M of cash from operating activities compared with $723.00M in the year-ago quarter. Free cash flow decreased to $171.00M from $372.00M.
As of Mar 31, 2022, the company had $2,016.00M in cash and cash equivalents with $6,839.00M of long-term debt.
Corning expects solid top-and bottom-line growth for 2022 while remaining focused on pricing, capital efficiency and cash generation. For the full year, management raised its expectations for sales to exceed $15.00B, with sales growing at a high-single-digit percentage and EPS growing up to a few percentage points faster than sales.
GLW has a market value of $29.86B while its EPS was booked as $1.21 in the last 12 months. The stock has 849.00M shares outstanding. In the profitability analysis, the company has gross profit margin of 36.00% while net profit margin was 7.70%. Beta value of the company was 0.96; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 1.90.