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Corning shares soared 12% on Monday after the company raised its second-quarter guidance, marking its best trading day since March 2020. Known for developing Gorilla Glass for Apple iPhones and other devices, Corning attributed its strong performance to increased demand for its optical connectivity products, which are essential for networks running generative artificial intelligence.
“We’ve invented new fibers, new cables, new connectors, and new custom integrated optical solutions to dramatically reduce installation costs, overall time, space, and carbon footprint,” Corning CEO Wendell Weeks stated on CNBC’s “Squawk Box.”
Corning now expects second-quarter sales to reach $3.6 billion, up from the previous guidance of $3.4 billion. Earnings per share are anticipated to be “at the high end or slightly above” the previous range of 42 cents to 46 cents per share. Weeks noted that second-quarter earnings are expected to show year-over-year growth.
“These results reinforce our confidence in ‘Springboard’ — Corning’s plan to add more than $3 billion in annualized sales over the next three years as cyclical factors and secular trends combine,” Weeks added.
While first-quarter sales declined by 6% year over year, Corning expects them to be the lowest for the year, projecting higher sales throughout 2024 due to improving market conditions.
Corning will report its second-quarter 2024 results on July 30, 2024.