Corning, Inc. (GLW) was up almost 5.5 percent on Wednesday, with shares trading for as much as $13.85, after an early earnings report that showed the company beating earnings expectations by a longshot.
The company is perhaps best-known for its durable Gorilla Glass that is used in the making of the ever-increasing number of mobile devices. Apple, Inc. (AAPL) can be counted among its largest customers, having used Gorilla Glass for the iPhone since the beginning.
For the first quarter, Corning’s net income was $494 million, or $0.33 per share on revenue of $1.81 billion, an increase on the prior year period during which the company made $474 million, or $0.31 per share on revenue of $1.82 billion. Earnings were also well above the average estimate of analysts, which had the company earning $0.24 per share on revenue of $1.96 billion. Adjusted earnings were still well ahead of expectations at $0.30 per share.
Furthermore, the company surpassed its own expectations for gross margin growth by two points, to 43 percent.
Corning was hurt by weaker sales of LCD screen glass, with consumers opting less often to upgrade their flat-screen television sets. Sales for telecom were also lagging, due to continued uncertainty in the Eurozone, and the discontinuation of government spending domestically.
All the same, revenue from the display technologies division was up to $650 million, an increase of 7 percent. The company cited increased sales of Gorilla Glass for its first quarter success, though the product is counted as part of Corning’s specialty materials division, where sales were down 10 percent to $258 million as a result of a weaker semiconductor market.
The company also raised its quarterly dividend by one cent to $0.10 per share, and announced a $2 billion share buyback plan.
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