Corning beats estimates but stock dips on Q2 guidance

Investing.com -- Corning Incorporated (NYSE: GLW) reported first-quarter results that exceeded analyst expectations, though shares fell 1% as investors assessed the company's second-quarter outlook.

The specialty glass and materials manufacturer posted adjusted earnings per share of $0.70, beating the analyst consensus of $0.69 by $0.01. Revenue reached $4.35 billion, surpassing the $4.29 billion estimate and marking an 18% increase from the same quarter last year.

The company's Optical Communications segment led growth with sales up 36% YoY to $1.85 billion, while Solar sales surged 80% to $370 million, driven by robust demand for Gen AI products and the ramp of new solar products.

For the second quarter, Corning issued guidance of $0.73-$0.77 per share, with a midpoint of $0.75 that falls slightly below the analyst consensus of $0.76. The company expects second-quarter revenue of approximately $4.6 billion, representing 14% YoY growth. The guidance includes an extended maintenance shutdown at Corning's solar wafer facility, which will result in an additional $30 million of expense versus the first quarter as the company transitions to a permanent power system and upgrades production equipment.

"Our strong first-quarter results continued the powerful trajectory of our Springboard plan," said Wendell P. Weeks, chairman, CEO, and president. "Versus Springboard's fourth-quarter 2023 starting point, we grew core sales 33% and core EPS 79%, and we expanded core operating margin and core ROIC by 390 basis points and 470 basis points, respectively."

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