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Corning shares surge as Q4 outlook tops estimates

Published 10/29/2024, 07:22 AM
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NEW YORK - Corning Incorporated (NYSE:GLW) reported third-quarter earnings that slightly beat analyst expectations and provided an upbeat outlook for the fourth quarter, sending its shares up 5% in early trading.

The specialty glass and ceramics maker posted adjusted earnings per share of $0.54 for Q3, edging past the analyst consensus of $0.53. Revenue came in at $3.73 billion, just above estimates of $3.72 billion and up 8% YoY.

For the fourth quarter, Corning expects core sales of approximately $3.75 billion, surpassing the $3.651 billion analyst consensus. The company also forecasts Q4 adjusted EPS of $0.53 to $0.57, above the $0.52 Wall Street estimate.

"We delivered another strong quarter of year-over-year growth," said Wendell P. Weeks, chairman and CEO. "Third-quarter core sales grew 8% to $3.73 billion, and core EPS grew 20% – more than double the rate of sales – to $0.54, with core operating margin expanding 160 basis points to 18.3%."

The company highlighted strong performance in its Optical Communications segment, which saw 36% YoY sales growth. The Enterprise portion of this segment grew sales by 55% YoY, driven by strong adoption of new optical connectivity products for generative AI.

Corning also implemented price increases in its Display Technologies segment and expects to deliver segment net income of $900 million to $950 million in 2025 while maintaining a 25% net income margin.

Ed Schlesinger, CFO, noted, "In the fourth quarter, we expect year-over-year sales growth to accelerate and EPS to grow faster than sales, with core sales growing about 15%, to approximately $3.75 billion, and core EPS growing approximately 40%."

The company generated $553 million in adjusted free cash flow during the quarter, demonstrating progress on its "Springboard" plan to improve profitability and cash flow.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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