Corning Q2 core sales beat estimates on optical communications strength
GLW•Q3 outlook and analyst context
Corning expects third-quarter core sales of $4.9 bln to $5 bln and core EPS of $0.85 to $0.89.
The company expects Q3 core sales and EPS to grow double digits year over year, and sees improved Solar segment profitability as the ramp continues.
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.
Optical communications drove growth
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.
The company also said new long-term agreements with Amazon and NVIDIA supported segment growth and capacity expansion.
Q2 core sales and EPS beat estimates
Corning said second-quarter core sales rose 17%, beating analyst expectations, while core EPS increased 30% and also beat estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | $4.51 bln | ||
| Q2 Core Sales | Beat |
