Corning (NYSE:GLW) Q3 sales and earnings beat estimates

In October 2014, Corning (NYSE stock symbol: GLW) announced its results for the third quarter of 2014.  It reported third-quarter revenue of $2.54 billion, an increase of 22.9 percent from the year-ago quarter. Also, core EPS grows 21%; and sales and earnings exceed expectations. 

Third-Quarter Highlights

• Core sales were $2.6 billion, a 26% increase on a year-over-year basis. Net sales (GAAP) were $2.5 billion, a 23% increase on a year-over-year basis.
• Core earnings per share were $0.40*, a 21% improvement over a year ago. This marked the eighth consecutive quarter of year-over-year core EPS growth. GAAP earnings per share were $0.72.
• Corning’s LCD glass volume was up by high single digits sequentially, driven by retail sales of TVs and supply chain preparations for the upcoming holiday season.
• Year-over-year core sales in Corning Environmental Technologies grew significantly at 25%, and core sales in the Optical Communications segment remained robust, growing 7%.

GLW earnings announcement for shareholders contain the following statements:

1) "We continue to work on a major initiative for our Life Sciences business, which we believe could become a large opportunity for us.".

2) "Gorilla Glass is receiving interest from the automotive industry for solutions that may reduce overall vehicle weight, improve gas mileage, and provide additional safety benefits. These new technologies may serve as the foundation for Corning's next growth surge".

3) "And with the anticipated conclusion of the current repurchase program this quarter, the board of directors has agreed to accelerate its evaluation of future share repurchases and dividend increases."

It had also recently been announced that Apple did not use Sapphire glass (from GTAT) for Apple iPhone 6.  GTAT's Sapphire glass is a direct competitor for Corning's flagship product, Gorilla Glass. 

Traditionally, iPhones have shipped with Corning’s Gorilla Glass as its protective cover glass. However, because of Apple‘s deal with GT Advanced Technologies, a manufacturer of sapphire crystal products and manufacturing equipment, there were rumors that the iPhone 6 would have a sapphire cover instead of Gorilla Glass.

While Apple has not explicitly mentioned the use of Corning’s Gorilla Glass on iPhone 6 or the iPhone 6 Plus, there have been indications that the iPhone 6 might have Gorilla Glass protecting its display.
The Likelihood Of Gorilla Glass On iPhone 6 Bodes Well For Corning.  The fact that Saphhire glass is unable to replace Gorilla Glass is great news for Corning and their shareholders.