Corning Q2 core sales beat estimates on optical communications strength

Overview

• U.S. materials science firm's Q2 core sales rose 17%, beating analyst expectations

• Core EPS for Q2 increased 30%, also beating analyst expectations

• Company expects Q3 core sales and EPS to grow double digits yr/yr

Outlook

• Corning expects Q3 core sales of $4.9 bln to $5 bln

• Company sees Q3 core EPS of $0.85 to $0.89

• Corning expects improved Solar segment profitability in Q3 as ramp continues

Result Drivers

• OPTICAL COMMUNICATIONS - Segment sales grew 32%, led by a 65% increase in Enterprise Networks and faster growth in Gen AI product sales

• SOLAR SEGMENT - Sales rose 90% after facility maintenance and upgrades; management expects profitability to improve in Q3

• CUSTOMER PARTNERSHIPS - New long-term agreements with Amazon and NVIDIA supported segment growth and capacity expansion

Company press release: ID:nBw6r16xma

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Corning Inc is $226.00, about 57.6% above its July 27 closing price of $143.36

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 41 three months ago

Reuters Recommended Reads

• July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

• July 28 - Meta, BlackRock partner on $14 billion El Paso data center

• July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)