Corning (GLW) is a 172-year-old technology company. Best known for their optical fiber and Gorilla Glass for smartphones, they also make the glass for flat panel displays used in computers and large-screen TVs. They also have growing businesses in emissions control filters, auto glass, laboratory products, and pharmaceutical packaging, explains Michael Murphy, editor of New World Investor.
Many of those areas are consumer products where revenues could flatten or decline in a recession. Revenues were $11.3 billion in 2020. They increased 24.6% in 2021 to $14.1 billion but essentially flatlined in 2022 at $14.2 billion. I think they slipped to about $13.6 billion in 2023 and will only grow slightly to $13.9 billion this year.
But management has done an excellent job of controlling costs and protecting the balance sheet. They reported $2.09 per share in 2022. I think they did about $1.70 in 2023 and should hit close to $2 a share this year. They have the ability to grow revenues 30% as their markets recover with minimal additional expenses. That translates to a likely earnings explosion in 2025 and 2026.
Meanwhile, GLW recently had nearly a 4% dividend yield and an aggressive stock buyback program. The company is managed for the benefit of the shareholders and can be a cornerstone holding in the conservative part of your portfolio.
