Corning (NYSE:GLW) raised its second-quarter core sales and EPS forecast, sending its shares about 12% higher on Monday. The company’s improved outlook is driven by the strong performance of its new optical connectivity products, which are used in generative AI applications.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Corning specializes in specialty glass and related materials and technologies. Its products are used in optical communications, display, mobile consumer electronics, semiconductors, and other key areas.
Corning’s Updated Q2 Financial Forecast
Corning expects core sales of $3.6 billion for Q2, up from its previous estimate of about $3.4 billion. Meanwhile, the company predicts that its core earnings per share (EPS) will reach the high end of or slightly exceed its prior forecast range of $0.42 to $0.46.
Corning will release its Q2 financials on July 30. Analysts expect Corning to report sales of $3.45 billion. Moreover, analysts project that GLW’s EPS will remain flat at $0.45 per share.
The “Springboard” Plan
Corning is progressing well with its “Springboard” strategy. This strategy aims to drive significant growth and generate incremental profit and cash flow. Under the plan, the company expects to add more than $3 billion in annualized sales in the next three years, driven by cyclical factors and secular trends. Moreover, it focuses on optimizing its production, costs, and capital.
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bullish on Corning stock favor its “Springboard” plan and see it as a positive catalyst.
Is GLW a Good Stock to Buy?
GLW stock has risen nearly 44% year-to-date. While high demand for AI-related optical connectivity products will likely boost GLW’s revenue and earnings, weaknesses in other end markets could remain a drag. Thus, Wall Street is cautiously optimistic about its prospects.
With five Buys and five Hold recommendations, Corning stock has a Moderate Buy consensus rating. Analysts’ average price target on GLW stock is $40.67, which implies 5.53% downside potential from current levels.
