Latest news with #WendellWeeks
Economist
6 days ago
- Business
- Economist
Behind the world's fragrances sits a shadowy oligopoly
|Paris|3 min read Damp carpet and old coffee. That is how a perfumier might have described the 'top notes'—industry speak for the initial olfactory experience—at SIMPPAR, the annual fragrance-ingredient expo held this month in Paris. It is where vendors from Sicilian dynasties to Japanese chemical firms gather to showcase their ingredients. Some are natural. The centifolia rose, a beautifully pungent pink flower harvested at dawn, at its peak potency, makes for excellent marketing material. Less romantic but highly lucrative are the synthetic ingredients. These molecules allow their makers to isolate specific smells, spare the animals once killed for their secretions and give fragrances staying power. This article appeared in the Business section of the print edition under the headline 'Big Smell' Business June 28th 2025 →It's not just Labubu dolls. Chinese brands are booming →How to tell the West's car industry really is in trouble →AI valuations are verging on the unhinged →How OnlyFans transformed porn →Behind the world's fragrances sits a shadowy oligopoly →Wendell Weeks, the small-town boss at the big-tech table →The three rules of conference panels →Who needs Accenture in the age of AI? From the June 28th 2025 edition Discover stories from this section and more in the list of contents ⇒Explore the edition
Economist
6 days ago
- Business
- Economist
Wendell Weeks, the small-town boss at the big-tech table
In his office in upstate New York, Wendell Weeks is about to do an ad hoc product demonstration. He brandishes something he calls a Norwegian hammer, a device used to test how resistant materials are to hard knocks. Mr Weeks first experiments on a thin sheet of metal; the hammer leaves a visible dent. Then he places the hammer over a small sample of glass; its percussive impact leaves no trace. This article appeared in the Business section of the print edition under the headline 'Man of glass' Business June 28th 2025 →It's not just Labubu dolls. Chinese brands are booming →How to tell the West's car industry really is in trouble →AI valuations are verging on the unhinged →How OnlyFans transformed porn →Behind the world's fragrances sits a shadowy oligopoly →Wendell Weeks, the small-town boss at the big-tech table →The three rules of conference panels →Who needs Accenture in the age of AI? From the June 28th 2025 edition Discover stories from this section and more in the list of contents ⇒Explore the edition
Yahoo
25-06-2025
- Business
- Yahoo
Corning's Q1 Earnings Call: Our Top 5 Analyst Questions
Corning's first-quarter results surpassed Wall Street expectations, with management crediting robust adoption of its optical communications products, particularly those supporting generative AI (GenAI) data centers, as a primary growth engine. CEO Wendell Weeks emphasized that strong customer demand for new optical and solar products fueled double-digit sales growth, while recent price increases in the display segment contributed to improved operating margins. Weeks noted, 'We expanded operating margin 250 basis points year-over-year to 18%,' reflecting the company's ability to capitalize on both volume and pricing levers. Is now the time to buy GLW? Find out in our full research report (it's free). Revenue: $3.68 billion vs analyst estimates of $3.48 billion (23.7% year-on-year growth, 5.8% beat) Adjusted EPS: $0.54 vs analyst estimates of $0.51 (5.4% beat) Adjusted EBITDA: $980 million vs analyst estimates of $932.4 million (26.6% margin, 5.1% beat) Revenue Guidance for Q2 CY2025 is $3.85 billion at the midpoint, above analyst estimates of $3.67 billion Adjusted EPS guidance for Q2 CY2025 is $0.57 at the midpoint, above analyst estimates of $0.56 Operating Margin: 12.1%, up from 8.5% in the same quarter last year Market Capitalization: $44.37 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Steven Fox (Fox Advisors) asked about Corning's pricing power in uncertain markets. CEO Wendell Weeks explained that the company's unique product offerings and local manufacturing footprint enable it to pass on costs and maintain competitive positioning, particularly in solar and optical communications. Wamsi Mohan (Bank of America) questioned whether temporary ramp-up costs in optical and solar were affecting capital expenditure plans. CFO Ed Schlesinger clarified that current capex guidance remains unchanged, as most ramp costs are operational expenses linked to scaling labor and production, not new facility investments. Asiya Merchant (Citi) sought clarity on supply constraints and pricing leverage in optical communications. Weeks responded that strategic differentiation with next-generation products could further strengthen Corning's pricing power and margin profile as adoption increases. Samik Chatterjee (JPMorgan) probed the impact of tariffs and macro uncertainty on customer behavior and solar investment plans. Weeks and Schlesinger indicated that demand for U.S.-made solar is robust and largely insulated from macro swings, with customer agreements providing long-term visibility. Mehdi Hosseini (Susquehanna) asked about display market trends and future buyback activity. Schlesinger and Weeks pointed to stable display demand and ongoing share repurchases, emphasizing the importance of maintaining a strong balance sheet alongside continued capital returns. In the coming quarters, our team will watch for (1) the pace and profitability of the optical communications and solar production ramps, (2) tangible progress in securing and announcing new commercial agreements for U.S.-made innovations, and (3) evidence that supply chain and tariff mitigation strategies are sustaining margin expansion. Updates on automotive glass adoption and customer wins in emerging markets will also be important signposts for Corning's execution. Corning currently trades at $51.49, up from $44.03 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
GLW Q1 Earnings Call: Corning Highlights Optical and Solar Growth, Addresses Tariff Resilience
Glass and electronic component manufacturer Corning (NYSE:GLW) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 16% year on year to $3.45 billion. On the other hand, next quarter's outlook exceeded expectations with revenue guided to $3.85 billion at the midpoint, or 3.5% above analysts' estimates. Its non-GAAP profit of $0.54 per share was 5.3% above analysts' consensus estimates. Is now the time to buy GLW? Find out in our full research report (it's free). Revenue: $3.45 billion vs analyst estimates of $3.48 billion (16% year-on-year growth, 0.7% miss) Adjusted EPS: $0.54 vs analyst estimates of $0.51 (5.3% beat) Adjusted EBITDA: $980 million vs analyst estimates of $932.4 million (28.4% margin, 5.1% beat) Revenue Guidance for Q2 CY2025 is $3.85 billion at the midpoint, above analyst estimates of $3.72 billion Adjusted EPS guidance for Q2 CY2025 is $0.57 at the midpoint, above analyst estimates of $0.56 Operating Margin: 12.9%, up from 8.5% in the same quarter last year Free Cash Flow was -$1 million compared to -$62 million in the same quarter last year Market Capitalization: $40.23 billion Corning's first quarter results reflected management's focus on scaling its optical communications and solar businesses, with executives citing rapid adoption of its new GenAI data center products and strong demand for U.S.-sourced solar components. CEO Wendell Weeks emphasized that Corning's manufacturing proximity to customers has helped limit tariff impact and position the company to respond quickly to evolving market needs. He stated, 'We are seeing early signs of stronger demand for our U.S.-made innovations,' referencing increased activity in optical, solar, and mobile electronics. Looking ahead, Corning's guidance for the next quarter is shaped by the expectation of continued momentum in optical communications and the ramping of U.S. solar production. Management noted that higher costs from production ramps and modest tariff exposures are already factored into their outlook, with Weeks reiterating confidence in the company's ability to meet its multi-year Springboard plan, even in the event of a broader economic slowdown. CFO Ed Schlesinger added that long-term customer commitments in solar and strong enterprise demand in optical support Corning's growth trajectory. Corning's management attributed quarterly performance to strong execution in high-growth segments and mitigating external challenges, while updating investors on strategic initiatives and product adoption. Optical communications momentum: Management cited rapid adoption of GenAI-related data center products, with enterprise sales up over 100% year-on-year. Weeks emphasized, "Our production tripled every month in the first quarter," as major hyperscale customers reaffirmed their capital plans. Solar business ramp: The company accelerated hiring and production at its U.S. wafer facility, citing full capacity commitments for 2025 and 80% commitments for the next five years. Recent trade actions have increased customer engagement for U.S.-sourced solar products. Tariff impact limited: Weeks explained that Corning's manufacturing footprint, with nearly 90% of U.S. sales from domestically produced goods, acts as a natural hedge. Existing tariffs are expected to impact earnings by just $0.01–$0.02 per quarter, already reflected in guidance. Display pricing power: Significant price increases in the display segment, implemented to offset currency movements, resulted in stable profitability despite flat end-market volumes. The company expects continued margin strength given a balanced supply-demand environment. Automotive segment reorganization: Corning consolidated its automotive glass and environmental technologies into a new segment, citing progress in supplying larger, higher-value glass components to automakers and recent partnership wins. Management's outlook for the coming quarters centers on execution in optical, solar, and display, with risk management strategies in place for tariffs and potential economic headwinds. GenAI and data center expansion: Growth is expected to continue as hyperscale customers invest in GenAI-related infrastructure, driving adoption of Corning's new optical products. Solar production scale-up: The ramp-up of U.S. wafer manufacturing is supported by long-term customer agreements, with management asserting that this business is relatively insulated from broader macroeconomic swings due to policy-driven demand. Tariff and supply chain resilience: Corning's global supply chain strategy and flexible manufacturing footprint are expected to limit direct tariff exposure and support margin stability, even as trade policies evolve. Steven Fox (Fox Advisors): Asked about Corning's pricing power in uncertain markets, especially in solar and optical. CEO Weeks said recent inflation recovery efforts strengthened pricing capabilities, and current demand for U.S.-sourced solar is supporting higher realized prices. Wamsi Mohan (Bank of America): Inquired about the nature of ramp costs in optical and solar and GenAI order visibility. CFO Schlesinger clarified that ramp costs are fixed and will dissipate as volume grows, while Weeks noted ongoing strong customer demand and no signs of market slowdown. Asiya Merchant (Citi): Questioned whether current demand for optical products is supply-constrained, and if Corning can press on pricing. Weeks responded that next-generation innovations could allow for stronger pricing, and current financials already reflect improved profitability. Samik Chatterjee (JPMorgan): Asked how tariffs and a potential downturn influence customer behavior and the solar ramp. Management described increasing customer interest in U.S. manufacturing and stated that solar growth is driven more by import substitution than macro trends. Mehdi Hosseini (Susquehanna): Sought clarification on display end-market demand and buyback strategy. Schlesinger stated that TV unit volumes should remain flat, while Weeks said price increases have locked in profitability; buybacks will continue but with balance sheet discipline. In the coming quarters, the StockStory team will be tracking (1) the pace of optical communications growth, specifically the uptake of GenAI data center products, (2) the execution and profitability of the U.S. solar manufacturing ramp as new capacity comes online, and (3) the impact of recent price actions in the display segment on margins. We will also monitor how management navigates evolving tariff policies and whether new customer agreements in solar and optical are announced as anticipated. Corning currently trades at a forward P/E ratio of 19.6×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Corning Inc (GLW) Q1 2025 Earnings Call Highlights: Strong Growth in Optical Communications and ...
Revenue: $3.7 billion, up 13% year over year. Earnings Per Share (EPS): $0.54, up 42% year over year. Operating Margin: Expanded by 250 basis points to 18%. Return on Invested Capital (ROIC): Increased by 300 basis points to 11.6%. Optical Communications Sales: $1.4 billion, up 46% year over year. Enterprise Sales: $705 million, up 106% year over year. Display Sales: $905 million, up 4% year over year. Specialty Materials Sales: $501 million, up 10% year over year. Automotive Sales: $440 million, down 10% year over year. Life Sciences Sales: $234 million, down 1% year over year. Free Cash Flow: Essentially break-even for the first quarter. Capital Expenditure (CapEx): Expected to be approximately $1.3 billion for the year. Share Buybacks: $100 million invested in share repurchases in the first quarter. Warning! GuruFocus has detected 6 Warning Signs with GLW. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Corning Inc (NYSE:GLW) delivered outstanding first-quarter results, exceeding guidance with a 13% year-over-year sales growth to $3.7 billion. The company expanded its operating margin by 250 basis points year over year to 18%, showcasing improved profitability. Corning Inc (NYSE:GLW) is confident in its ability to deliver its Springboard plan, aiming to add more than $4 billion in annualized sales and achieve a 20% operating margin by the end of 2026. The company is experiencing strong demand for its US-made innovations, particularly in optical communications, solar, and mobile consumer electronics. Corning Inc (NYSE:GLW) has committed customers for 100% of its solar capacity available in 2025 and 80% for the next five years, indicating strong future demand. The financial impact of existing tariffs, primarily between the US and China, is estimated to be $0.01 to $0.02 per quarter, which could affect profitability. Corning Inc (NYSE:GLW) faces temporarily higher costs associated with ramping up production for new products in optical communications and solar, impacting short-term earnings. The automotive segment experienced a 10% year-over-year decline in sales, primarily due to softness in European markets and the North America Class 8 market. The life sciences segment saw a slight decline in sales, down 1% year over year, indicating challenges in this area. Despite strong demand, the company faces potential risks from macroeconomic downturns, which could impact its growth trajectory. Q: Can you discuss Corning's pricing power in uncertain markets, particularly in solar, auto, and optical sectors? A: Wendell Weeks, CEO, explained that Corning has successfully passed cost increases to customers, especially post-pandemic. In solar, increased demand for US-sourced products has improved pricing potential. In optical, unique products drive growth, and Corning's competitive moat helps mitigate tariff impacts. The automotive sector has minimal tariff exposure, but Corning's customer relationships are strong enough to manage any impacts. Q: Your CapEx outlook remains at $1.3 billion despite temporary capacity ramp costs in optical and solar. Is this an OpEx ramp or a demand pull-forward? A: Edward Schlesinger, CFO, clarified that the ramp involves bringing on fixed costs, such as adding jobs in solar, which will dissipate as production scales. The optical ramp doesn't require significant CapEx. The current CapEx guide supports the Springboard plan's $6 billion and $4 billion growth targets. Q: What is the visibility of Gen AI orders amid concerns about data center spending pullbacks? A: Wendell Weeks, CEO, stated that recent dialogues with hyperscaler customers reinforce growth estimates. While individual customer plans may vary, overall demand remains strong, with customers seeking more of Corning's new products and leveraging its US manufacturing footprint. Q: Is the optical segment supply-constrained, and is there an opportunity to strengthen Corning's position in this market? A: Wendell Weeks, CEO, acknowledged strategic opportunities, especially with next-gen products. The rising profitability in the optical segment reflects actions taken to leverage strategic centrality, and future innovations could further improve margins. Q: How are customer conversations evolving post-Liberation Day tariffs, and how flexible is the solar ramp plan in a downturn? A: Wendell Weeks, CEO, noted increasing demand for US manufacturing platforms, with ongoing dialogues potentially leading to significant agreements. Edward Schlesinger, CFO, added that solar demand is somewhat insulated from macroeconomic factors, with long-term supply agreements securing capacity. Q: What are you hearing from panel customers regarding end-market demand, particularly for TVs? A: Edward Schlesinger, CFO, indicated that TV units are expected to remain flat, with growth driven by increasing screen sizes. China's stimulus has impacted demand, but overall expectations remain unchanged. Q: Why not be more aggressive with share buybacks given strong free cash flow and execution? A: Edward Schlesinger, CFO, emphasized maintaining a strong balance sheet while continuing share buybacks. Corning started buybacks in Q2 2024 and plans to continue, using it as the primary vehicle for returning cash to shareholders. Q: How does Corning manage potential customer production shifts from China to India? A: Wendell Weeks, CEO, explained that Corning has prepared for such shifts by establishing production channels in India and other regions, ensuring they can supply customers regardless of location changes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
