Corning Stock Soars After Glass Maker Lifts Guidance on Generative AI Boost

Stock Trading at Highest Level Since Early 2022

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published July 08, 2024
10:41 AM EDT
Corning CEO Wendell Weeks arrives to a meeting on the U.S. Economy with CEOs and President Joe Biden on July 28, 2022.
Corning CEO Wendell Weeks arrives to a meeting on the U.S. Economy with CEOs and President Joe Biden on July 28, 2022.

Anna Moneymaker / Getty Images

Key Takeaways

  • Corning raised its current-quarter outlook, citing demand for its optical connectivity products for generative artificial intelligence applications.
  • The specialty glass maker sees EPS at the high end or slightly above its previous estimate, with revenue up $200 million.
  • The company anticipates incremental gains in profit and cash flow.
  • Corning shares were up more than 9% early Monday, trading at their highest levels since early 2022.

Shares of Corning (GLW) soared Monday when the specialty glass maker boosted its guidance, citing rising demand for its products used in generative artificial intelligence (AI) applications.

The company now anticipates current-quarter earnings per share (EPS) at the high end of or slightly above its previous outlook of $0.42 to $0.46. It sees revenue of about $3.6 billion, $200 million more than its earlier estimate.

Corning shares were up more than 9% early Monday, trading at their highest levels since early 2022.

Five-year stick price chart for Corning Inc.

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CEO Wendell Weeks said that the gains were “primarily driven by the strong adoption of our new optical connectivity products for Generative AI.” The results have increased confidence in Corning’s “Springboard” plan to raise annualized sales by more than $3 billion in the next three years "as cyclical factors and secular trends combine," he said.

Weeks said that the company believes the first quarter will be the lowest this year, and that the company expects to post strong incremental profit and cash flow as it “captures this growth management.”

The Corning, N.Y.-based firm is scheduled to report second-quarter numbers on July 30 before the markets open.

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  1. Corning. "Corning Expects Second-Quarter Core Sales to Exceed Guidance, with Core EPS at the High End of or Slightly Above Guided Range."

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