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Corning enhances Q2 core sales outlook, shares surge over 6%

Corning Incorporated provided an update on expectations for its second-quarter 2024 results. The company now expects core sales of approximately $3.6 billion, compared with previous guidance of approximately $3.4 billion, with core EPS at the high end of or slightly above management’s guided range of $0.42 to $0.46.

Wendell Weeks, chairman and chief executive officer, said, “We expect second-quarter core sales to exceed our previous guidance and mark a return to year-over-year growth. The outperformance was primarily driven by the strong adoption of our new optical connectivity products for Generative AI. These results reinforce our confidence in ‘Springboard’ – Corning’s plan to add more than $3 billion in annualized sales in the next three years as cyclical factors and secular trends combine.”

Three Core Components of “Springboard” Framework:

  • Management believes that first-quarter 2024 will be the lowest quarter for the year.
  • The company expects to grow by more than $3 billion in annualized sales in the next three years, driven by a combination of cyclical factors and secular trends. The outlook in each of the company’s markets is positive, and its market positions are strong. Innovative products and deep customer relationships position Corning well to capitalize on these opportunities.
  • As Corning captures this growth, management expects to deliver powerful incremental profit and cash flow. The company already has the required production capacity and technical capabilities in place, and the cost and capital are already reflected in its financials.

Weeks continued, “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.”

CT Bureau

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