EPS: Earnings Per Share (EPS) for Q1 2024 was $0.38.
Gross Margin: Year-over-year gross margin grew by 160 basis points to 36.8%.
Free Cash Flow: Improved by $300 million compared to the same period last year.
Optical Communications Sales: Q1 sales were $930 million, down 17% year-over-year, with net income for the quarter at $100 million, down 37% year-over-year.
Display Technologies Sales: Q1 sales were $872 million, up 14% year-over-year, with net income at $201 million, up 26% year-over-year.
Specialty Materials Sales: Q1 sales were $454 million, up 12% year-over-year, with net income at $44 million, up 13% year-over-year.
Environmental Technologies Sales: Q1 sales were $455 million, up 6% year-over-year, with net income at $105 million, up 28% year-over-year.
Life Sciences Sales: Q1 sales were $236 million, down 8%, with net income at $13 million, up 44% year-over-year.
Hemlock and Emerging Growth Businesses Sales: Q1 sales were $311 million, down 19% year-over-year.
Future Guidance
Second Quarter Sales: Expected to be approximately $3.4 billion.
EPS Guidance for Q2: In the range of $0.42 to $0.46.
Free Cash Flow: Anticipated to grow sequentially by approximately $300 million in the second quarter.
Annual CapEx Expectations: Approximately $1.2 billion for the year.
2024 CapEx: Minimal additional cash investment expected due to existing capabilities and capacity to add more than $3 billion in annualized sales.
Trends, Market Conditions, Sentiment
Market Recovery Signs: The first quarter shows signs of improving market conditions. The expectation that Q1 will be the lowest quarter of the year with improvement from there.
Optical and Display Market: Near term, these sectors are expected to be the biggest drivers of improvement. Optical Communications sees growing orders and Display Technologies benefits from higher panel maker utilization.
AI Data Centers: Significant demand expected from generative AI, leading to increased demand for Corning’s optical solutions.
Automotive Market: Increased GPF adoption and expectations of growth due to new emission standards.
Mobile Consumer Electronics: Growth expected through innovation and collaboration with OEMs.
Currency Hedging: Active hedging against foreign currency exposure, particularly with the Japanese yen, to protect earnings and cash flow.
Notable Quotes
On Market Conditions: “More importantly, we’re seeing encouraging signs of improving market conditions.”
On Future Growth: “We are executing our plans to add more than $3 billion in annualized sales within the next 3 years.”
On Profitability: “Our first quarter results…established a higher profitability and cash flow base.”
On Optical Communications and AI: “In Optical Communications, fiber is the ascendant technology, and we’re the clear market leader.”
On Financial Strategy: “As our cash flow increases, we remain committed to providing returns to our shareholders.”
On Cultural Impact: “During his tenure, he [Jeff Evenson] helped grow the company, develop frameworks that define our priorities and guide our actions and raised awareness of glass as a key enabling material.”
