Yahoo Finance Corning (GLW) Raises Q2 Sales Forecast on Solid Demand
Shares of Corning Incorporated GLW were trading near their 52-week high after management revised its second-quarter earnings outlook on Monday. The company expects second-quarter core sales to exceed its previous guidance when it officially releases the quarterly results at the end of this month.
Management now expects second-quarter core sales of approximately $3.6 billion, indicating a 6% increase from its prior forecast of around $3.4 billion. Core earnings per share (EPS) are expected to be at the high end or slightly above management’s prior guided range of 42-46 cents, implying a year-over-year growth.
This outperformance is expected to have been driven by the rising demand for Corning’s optical product portfolio used in generative AI applications. These fiber optic solutions play a crucial role in enabling companies to transmit massive amounts of data needed for training AI systems. Additionally, the company also expects that its Springboard framework will add more than $3 billion in annualized sales over the next three years on favorable cyclical and secular trends.
The outlook in each of Corning’s markets remains optimistic, bolstered by its strong market positions. With a portfolio of innovative products and robust customer relationships, the company is well-positioned to capitalize on favorable demand trends. With a healthy growth momentum, management expects to deliver solid incremental profit and cash flow in the upcoming quarter.
Shares of Corning have gained 22.9% over the past year compared with the industry’s growth of 74.2%.
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Zacks Rank and Key Picks
Corning currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry have been discussed below.
Arista Networks, Inc. ANET, sporting a Zacks Rank of 1 (Strong Buy) at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista delivered a trailing four-quarter average earnings surprise of 15.39%. It has a long-term growth expectation of 16.07%.
Ooma, Inc. OOMA, sporting a Zacks Rank #1, offers cloud-based communications solutions, smart security and other connected services. The company’s smart software-as-a-service and unified-communications-as-a-service platforms serve as a hub for seamless communications and networking infrastructure applications.
It delivered a trailing four-quarter average earnings surprise of 8.90%. In the last reported quarter, Ooma delivered an earnings surprise of 27.27%.
Motorola Solutions, Inc. MSI provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank #2 (Buy).
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
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