Corning (GLW) Q2 2024 earnings summary

Executive summary

• Q2 2024 core sales reached $3.60B, up 4% year-over-year and 11% sequentially, with core EPS of $0.47, both exceeding guidance and driven by strong adoption of new optical connectivity products for generative AI applications.

• The Springboard plan targets over $3 billion in annualized sales growth within three years, with $1.3B incremental annualized sales run-rate achieved in Q2 2024 versus Q4 2023.

• Share repurchases began in Q2 2024, reflecting management's confidence in future value creation and the Springboard plan.

• Net income attributable to Corning was $104M for Q2 2024, down 63% year-over-year, mainly due to lower gross margin and reduced gains on currency contracts, while core net income was $407M, up 5% year-over-year.

• Signed agreement with Lumen Technologies, reserving 10% of global fiber capacity for two years to interconnect AI-enabled data centers, marking the first outside plant deployment of new GenAI fiber and cable system.

Financial highlights

• Q2 2024 core sales: $3.60B, up 4% year-over-year and 11% sequentially; GAAP sales: $3.25B.

• Core EPS was $0.47, up from $0.45 year-over-year; GAAP EPS was $0.12.

• Core gross margin improved to 37.9%, up 170 bps year-over-year and 110 bps sequentially; GAAP gross margin was 29.2%.

• Adjusted free cash flow was $353M in Q2 2024.

• Q2 2024 core net income was $407M, up 5% year-over-year.

Outlook and guidance

• Q3 2024 core sales expected to be approximately $3.7B, with core EPS guidance of $0.50–$0.54, driven by continued adoption of GenAI optical solutions.

• Core EPS growth is expected to outpace sales growth in Q3.

• Full-year 2024 capital expenditures anticipated at ~$1.2B.