Corning's stock soars 8.7% after company raises Q2 guidance to reflect AI bump

By Ciara Linnane

Maker of glass for big-screen TVs, mobile phones and optical fiber, believes the first quarter will be the lowest one for all of 2024

Corning Inc.'s stock (GLW) rose 8.7% early Monday, after the specialty glass maker raised its second-quarter sales and profit guidance after a strong performance for its new optical connectivity products for Generative AI.

The Corning, N.Y.-based company is now expecting sales of about $3.6 billion for the quarter, up from prior guidance of $3.4 billion. It expects core per-share earnings at the high end of, or slightly above, its guidance of 42 cents to 46 cents.

"These results reinforce our confidence in 'Springboard' - Corning's plan to add more than $3 billion in annualized sales in the next three years as cyclical factors and secular trends combine," Chief Executive Wendell Weeks said in prepared remarks.

The company, which makes glass for big-screen TVs, mobile phones and optical fiber, believes the first quarter will be the lowest one for all of 2024.

The outlook for all its markets is position and its market positions are strong, said the company. It expects to deliver "powerful incremental profit and cash flow," and believes it has the needed production capacity and technical capabilities in place.

"Because of our confidence in Springboard, we began buying back our shares in the second quarter. We're energized by the tremendous opportunity for value creation we've built for our shareholders," said Weeks.

The company will offer second-quarter numbers on July 30 before market open.

The stock has gained 37% in the year to date, outperforming the S&P 500's 16.7% gain.

-Ciara Linnane

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07-08-24 0947ET

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