Why Is Corning (GLW) Up 0.4% Since Last Earnings Report?

A month has gone by since the last earnings report for Corning (GLW). Shares have added about 0.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Corning due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Corning Q3 Earnings Beat on Solid Growth in Optical CommunicationsCorning reported impressive third-quarter 2024 results, wherein both the top line and bottom line surpassed the respective Zacks Consensus Estimate. The advanced glass substrates producer witnessed revenue expansion year over year, driven by healthy demand in the Optical Communications and Life Sciences segments. The growing adoption of new optical connectivity products for generative AI is a tailwind. Solid growth in free cash flow is a positive.Net IncomeOn a GAAP basis, the company reported a net loss of $117 million or a loss of 14 cents per share against a net income of $164 million or 19 cents per share in the year-ago quarter. Higher cost of sales and increase in operating expenses impeded the net income during the quarter.Core earnings were $465 million or 54 cents per share, up from $386 million or 45 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 2 cents.RevenuesNet sales, on a GAAP basis, were $3.39 billion, up from $3.17 billion reported in the year-ago quarter. Solid traction in several verticals boosted net sales. Core sales were up 8% to $3.73 billion. The top line beat the consensus estimate of $3.7 billion.Segment ResultsOptical Communications generated $1.24 billion in revenues, up 36% from $918 million in the year-ago quarter. The top line beat our estimate of $1.11 billion. Net income from this segment improved to $175 million from $91 million reported in the year-ago quarter. Solid demand for new optical connectivity products for generative AI applications propelled net sales in the Enterprise vertical of this segment.Display Technologies registered $1.01 billion in revenues, up 4% year over year. Net sales missed our revenue estimate of $1.03 billion. The segment’s net income was $285 million compared with the prior-year quarter’s figure of $242 million. The company’s strategy of price hikes supported the top line.Net sales from Specialty Materials stood at $548 million, down 3% year over year. However, demand for premium glass for mobile devices remains strong. The top line missed our estimate of $566.6 million. Net income was $72 million, matching prior-year quarter's tally.Environmental Technologies contributed $382 million in net sales, down from $449 million in the year-ago quarter. The downturn is primarily attributed to lower sales of Class 8 trucks in North America. Net sales fell short of our revenue estimate of $437.9 million.Revenues from the Life Sciences segment were $244 million compared with the year-earlier quarter’s figure of $230 million, up 6% year over year. Segment net income was $15 million, up 15% year over year.Hemlock and Emerging Growth Businesses reported a 9% decline in net sales year over year to $298 million. The company reported a net loss of $12 million compared with a net loss of $8 million in the year-ago quarter.Other DetailsQuarterly gross profit increased to $1.13 billion from $1 billion, with respective margins of 33.5% and 31.6%. Operating income was $302 million, up from $236 million in the prior-year quarter. Core gross margin was 39.2%, up from 37% in the year-ago quarter, owing to various productivity and pricing improvement actions across business operations.Cash Flow & LiquidityDuring the September quarter, Corning generated $699 million of net cash from operations compared to a cash flow of $722 million in the year-earlier quarter. As of Sept. 30, 2024, the company had $1.61 billion in cash in cash and cash equivalents with $7.07 billion of long-term debt.OutlookFor the third quarter of 2024, core sales are estimated at $3.75 billion. Core EPS is projected to be in the range of 53-57 cents.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.The consensus estimate has shifted 7.06% due to these changes.VGM ScoresAt this time, Corning has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Corning has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. 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