Key Takeaways
- Shares of Corning, a beneficiary of the artificial intelligence (AI) boom, tumbled Tuesday after the specialty glass maker’s second-quarter results and current-quarter guidance missed analysts’ expectations.
- Corning said that it expects third-quarter core EPS between $0.50 and $0.54, while analysts polled by Visible Alpha are looking for $0.55.
- The company’s stock had soared earlier this month after it lifted its second-quarter adjusted earnings guidance on AI fueling demand for its optical products.
Shares of Corning (GLW), a beneficiary of the artificial intelligence (AI) boom, tumbled Tuesday after the specialty glass maker’s second-quarter results and current-quarter guidance missed analysts’ expectations.
The company’s shares soared earlier this month after it lifted its second-quarter adjusted earnings guidance on AI fueling demand for its optical products. But on Tuesday, its shares plunged 8.5% as of 12:30 p.m. ET on GAAP Q2 results that missed estimates and a disappointing third-quarter outlook.
Corning said that it expects core sales to grow to about $3.7 billion in the third quarter, with core earnings per share (EPS) in the range of $0.50 to $0.54. Analysts polled by Visible Alpha had been expecting $3.75 billion and $0.55, respectively.
Q2 GAAP Results Also Miss; Adjusted Figures Better
For the second quarter, Corning reported EPS of $0.12 on revenue of $3.25 billion, while analysts were looking for $0.33 and $3.36 billion, respectively.
However, Corning’s adjusted Q2 figures were stronger. It posted core EPS of $0.47, topping its own raised guidance, on $3.6 billion in core sales, which matched its revised expectations. The core EPS figure matched Visible Alpha estimates and core sales narrowly beat them.
Chief Executive Officer (CEO) Wendell Weeks said the results were “driven primarily by the strong adoption of our new optical connectivity products for generative AI.”
Despite their slump Tuesday, Corning shares have gained 28% year-to-date.