Corning Incorporated (NYSE: GLW) stock surged during intraday trading Monday after the specialty glass maker raised its second-quarter guidance, citing growing demand for its products used in generative artificial intelligence (AI) applications.
Corning now expects second-quarter earnings per share (EPS) at the high end of or slightly above its previous outlook of $0.42 to $0.46. Additionally, the company forecasts revenue to reach approximately $3.6 billion, reflecting an increase of $200 million from its earlier estimate.
CEO Wendell Weeks said the improved outlook is primarily driven by the strong adoption of Corning’s new optical connectivity products tailored for Generative AI applications.
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.
Looking ahead, Weeks suggested that the company anticipates the first quarter to represent the nadir of its financial performance for the year. The specialty glass maker expects to post a strong incremental profit and cash flow as it capitalizes on growth opportunities.
Corning will report its second-quarter financial results on July 30, before the markets open.
Corning (NYSE: GLW) Stock Reaction
GLW stock jumped 11.99% on Monday, closing at $43.05, marking a 10.81% increase for the week. The trading volume was 35,464,496 shares, significantly higher than the average daily volume of 6.56 million.
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