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Corning shares rise nearly 10% as management says Q2 core sales to exceed guidance

Published 2024-07-08, 11:10 a/m
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Materials science company Corning’s (NYSE:GLW) stock gained 9.82% to trade at $42.22 Monday morning after it issued a release saying it expects Q2 core sales to exceed guidance, while core EPS is likely to come in at the higher end of or slightly above the guided range. Corning is scheduled to report Q2 results at the end of this month.

Management said it now expects core sales of around $3.6 billion, versus the earlier guidance of $3.4B. This would also mark a return to year-on-year core sales and EPS growth. The company had earlier guided for core EPS of $0.42 to $0.46.

The expected outperformance is driven by strong adoption of new optical connectivity products for Generative AI, revealed the company in the release. In addition, Corning’s Springboard framework is set to add over $3B in annualized sales over the next three years on favorable cyclical and secular trends.

Wendell Weeks, chairman and chief executive officer remarked, “We’re off to a great start with our ‘Springboard’ plan. We’ve positioned the company to capture significant growth with powerful incremental profit and cash flow. 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.”

The company also highlighted that it already has in place the necessary production capacity and technical capabilities, while the costs and capital are reflected in its financials.

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