Corning Inc. Q1 Profit Rises 4%; Core EPS Tops Estimates; Raises Dividend 11% (GLW)

Corning Inc. Q1 Profit Rises 4%; Core EPS Tops Estimates; Raises Dividend 11% (GLW)

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Specialty glass maker Corning Incorporated (GLW) reported early on Wednesday an increase in first quarter profits, with adjusted earnings coming in better-than-expected. However, revenue declined, missing Wall Street views.

The Corning, New York-based company posted a first quarter net income of $494 million, or 33 cents per share, up from $474 million, or 31 cents per share, a year ago.

Core earnings came in at 30 cents per share in the first quarter, up 15% from last year. According to analysts polled by Thomson Reuters, Corning was expected to see core earnings of 24 cents per share in the quarter.

Revenue for the quarter decline to $1.81 billion from $1.92 billion the same period a year ago, with core sales of $1.80 billion. Analysts were expecting the company to see revenues of $1.96 billion in the quarter.

The Board of Directors of Corning Inc. also announced on Wednesday that it has approved an increase to its quarterly dividend payout. The company will now payout 10 cents per share each quarter, up from the previous payout of 9 cents per share. This dividend will be paid on June 28 to shareholders of record on May 31.

Furthermore, the Board authorized a $2 billion share repurchase program that expires on December 31, 2014.

Corning Inc. shares were up 62 cents, or +4.51%, during morning trading on Wednesday. The stock is up +2.10% year-to-date.

The Bottom Line
Shares of Corning Inc. (GLW) have a dividend yield of 2.91% based on Wednesday’s intraday trading price of $13.75 and the company’s updated annualized dividend payout of 40 cents per share.

Corning Incorporated (GLW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

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