Corning Inc. reported fourth-quarter FY21 core sales growth of 12 percent year-on-year to $3.71 billion, above the consensus of $3.59 billion.
Display Technologies sales grew 12 percent Y/Y to $942 million due to a favorable glass pricing environment.
Optical Communications sales rose 24 percent Y/Y to $1.2 billion as 5G, broadband, and cloud computing continue to drive growth across the segment.
Specialty Materials sales declined 5 percent Y/Y to $518 million. Life Sciences sales rose 16 percent Y/Y to $317 million.
Environmental Technologies sales declined 21 percent Y/Y to $353 million, reflecting lower production levels in the automotive industry due to the semiconductor chip shortage.
Margin
The core gross margin contracted 180 basis points Q/Q to 36.5 percent. The below-normal automotive production, seasonally lower sales in Specialty Materials, and inflationary headwinds reduced profitability.
Core EPS of $0.54 beat the consensus of $0.52.
Corning generated $425 million in free cash flow.
Outlook
Corning sees Q1 FY22 core sales of $3.5 billion – $3.7 billion, above the consensus of $3.42 billion. It sees core EPS of $0.48 – $0.53 versus the consensus of $0.48.
Corning sees FY22 sales of $15 billion and profit to grow faster than sales.
By Anusuya Lahiri
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.
