Corning Shares Rise as Q4 Outlook Exceeds Expectations

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Corning Shares Rise as Q4 Outlook Exceeds Expectations

NEW YORK - Corning Incorporated (NYSE:GLW) shares rose 5% in early trading following the company's third-quarter earnings slightly exceeding analysts' expectations and providing a positive outlook for the fourth quarter.
The specialty glass and ceramics manufacturer reported adjusted earnings per share of $0.54, surpassing the analyst estimate of $0.53. Revenue came in at $3.73 billion, slightly above the anticipated $3.72 billion, showing an 8% increase year-over-year.
Corning expects fourth-quarter core sales to reach approximately $3.75 billion, exceeding the analysts' forecast of $3.651 billion. The company also anticipates adjusted earnings per share for the fourth quarter to be between $0.53 and $0.57, above the Wall Street estimate of $0.52.
Chairman and CEO Wendell P. Weeks stated, “We had another strong growth quarter year-over-year. Core sales increased by 8% to reach $3.73 billion, and adjusted earnings per share grew by 20%—more than double the rate of sales—to $0.54, with the core operating margin rising 160 basis points to 18.3%.”
The company highlighted strong performance in its Optical Communications segment, which demonstrated a 36% year-over-year sales growth. The Enterprise portion of this segment reported a remarkable 55% annual increase in sales, driven by the strong adoption of new optical connectivity products for generative artificial intelligence.
Corning also implemented price increases in the Display Technologies segment and expects to generate segment net revenue between $900 million and $950 million in 2025 while maintaining a 25% net income margin.
CFO Ed Schlesinger remarked, “In the fourth quarter, we expect sales growth to accelerate year-over-year and earnings per share to grow faster than sales. We project core sales to increase approximately 15% to $3.75 billion and core earnings per share to grow around 40%.”
The company generated $553 million in adjusted free cash flow during the quarter, making progress in its “Springboard” plan aimed at improving profitability and cash flow.