Corning Incorporated: Are The Returns On Its Display Business Good Enough?

Based on the Q1 2024 earnings, Corning Incorporated appears to be in a position of growth and profitability. With sales close to $3.3 billion and EPS of $0.38, the company exceeds its guidance predictions. There was a year-over-year gross margin growth of 160 basis points to 36.8%, and a substantial improvement in free cash flow by $300 million. These results indicate high-end performance and an overall improvement in market conditions. In fact, Corning anticipates the first quarter to be the lowest for the year and projects a growth of over $3 billion in annualized sales within the next three years, with requisite capacity and technical capabilities already in place.