By Christiana Sciaudone
Investing.com -- Corning (NYSE:GLW) shares rallied 5% on Wednesday after executives said third quarter results are looking good.
Sales should grow by a low-teen percentage in the third quarter compared to the second, while profitability growth is expected to outpace sales growth on cost-control. The company is on track for positive free cash flow this year, Chief Financial Officer Tony Tripeny and Chief Strategy Officer Jeff Evenson said at the Citi 2020 Global Technology Conference Wednesday.
“I’m pleased to share that the positive momentum seen in July has continued, and we expect third-quarter sequential sales growth in the low teens, higher than the current consensus estimate of high-single digits," Tripeny said. "We’re delivering for our customers, outperforming our markets, and preserving our financial strength. Looking ahead, our underlying growth drivers are intact."
In July, the company reported second quarter earnings per share of 25 cents compared to the expected 12 cents, on sales of $2.59 billion compared to the expected $2.38 billion.
Corning was awarded $204 million in funding from the Biomedical Advanced Research and Development Authority to expand domestic manufacturing capacity to make vials for an eventual Covid-19 vaccine. Growth from premium smartphones drove an increase in revenue, as did Corning's automotive and optical communications segments.