Corning Incorporated (GLW) stock dropped nearly 6% today after the glass and ceramics manufacturer reported third quarter EPS of $0.56 per share, missing estimates by $0.02.
Semiconductor Shortage
Despite recording an all-time of $3.6 billion in core sales, Corning reported a number of worrying trends.
The company stated that the global semiconductor chip shortage led to "lower production levels in the automotive industry," and reduced sales by approximately $40 million and EPS by $0.02 in the quarter.
Tony Tripeny, EVP and CFO, hailed Corning's global supply management and operations teams for "maintaining a steady supply of raw materials and finding creative shipping strategies."
Inflationary Concerns
Tripeny also stated that Corning, "incurred additional costs that were elevated by inflation. To help offset these costs, we have price increases underway in all of our businesses.”
Corning still expects to reach record sales of $14.2 billion for the fiscal year, but much is dependent on the amount of inflation for the fourth quarter.
Life Sciences Growth
On a positive note, Corning reported strong growth in its Life Sciences division, with third-quarter sales up $305 million year-over-year, a 37% increase.
The growth was "driven by ongoing demand to support the global pandemic response, continued recovery in academic and pharmaceutical research labs, and strong demand for bioproduction vessels and diagnostic-related consumables."
