Corning shares gain on Q4 profit guide beat

Corning (GLW) forecast fourth-quarter core earnings above Wall Street estimates on Tuesday, as the glassmaker benefits from strong demand for optical components used in AI infrastructure.GLW stock was up 3% before the bell. It has gained 41% so far this year.

The company expects core earnings per share of 96 cents to $1 in the fourth quarter, compared with analysts' average estimate of 93 cents. Corning expects core sales of $5.2B to $5.3B, compared with estimates of $5.21B.

Third-quarter core earnings rose 36% to 91 cents per share, beating estimates of 88 cents. Core sales increased 19% to $5.08B, also above expectations.

Sales at Corning's Optical Communications business, which supplies fiber-optic products used in data centers, rose 44% to $2.38B in the quarter. Enterprise Networks sales grew 84%, while sales of products for generative AI applications more than doubled from a year earlier. Solar sales rose 37%, although production ramped up more slowly than anticipated.

Chief executive Wendell Weeks said on CNBC that Corning expects its annualized sales run rate to reach $30B by the end of 2028 and $40B by the end of 2030 under its Springboard growth plan. Corning's Springboard Plan is a multi-year guide launched in 2023

"We also expect to grow earnings faster than sales, with significantly higher ROIC and substantially more free cash flow. To support that growth, we have steadily added capacity, backed by long-term customer agreements that share the cost and risk of expansions," CFO added.

Corning's GAAP earnings were 78 cents per share, on sales of $4.86B.