Corning Inc GLW reported a second-quarter FY23 core sales decline of 7% year-on-year to $3.482 billion, beating the consensus of $3.480 billion. Core EPS of $0.45 missed the consensus of $0.46.
Display Technologies sales grew by 6% Y/Y and 22% Q/Q to $928 million, driven by higher volume from increased panel maker utilization.
Optical Communications sales declined by 19% Y/Y and 5% Q/Q to $1.07 billion due to lower volume.
Specialty Materials sales decreased by 13% Y/Y, primarily reflecting continued end-market softness, and up by 4% Q/Q % to $423 million reflecting higher Gorilla Glass sales, consistent with normal seasonality.
Life Sciences sales decreased by 26% Y/Y and 10% Q/Q to $231 million, reflecting lower demand for COVID-related products.
Environmental Technologies sales grew by 28% Y/Y and 6% Q/Q to $431 million, driven by a ramp in gasoline particulate filter sales in China related to new regulations.
Core gross margin increased 100 bps Q/Q to 36.2%, and core operating margin expanded by 200 bps Q/Q to 17.5%, driven by the company’s pricing and productivity-improvement actions.
The Q2 free cash flow improved from Q1 to $310 million.
Wendell P. Weeks, chairman and chief executive officer, said, “Corning’s second-quarter results reflect progress on our comprehensive plan to improve profitability and cash flow – even in the current weak end-market environment.”
Outlook: Corning sees Q3 core sales of $3.50 billion (consensus $3.70 billion) and core EPS similar to Q2 of $0.45 (consensus $0.53).
Price Action: GLW shares traded higher by 1.40% at $33.66 on the last check Tuesday.
Image and article originally from www.benzinga.com. Read the original article here.