Core Viewpoint - Corning Incorporated is experiencing a positive growth outlook driven by demand for optical connectivity products related to Generative AI, with a significant increase in share price by 31.29% since early May [1] Financial Performance - For Q2, Corning anticipates core sales of approximately $3.6 billion, up from a previous estimate of $3.4 billion, with core EPS growth expected to exceed the range of $0.42 to $0.46 [1] - The company projects an additional $300 million in turnover, raising total sales estimates to $14.1 billion, with a core operating profit increase from €2.52 billion to €2.6 billion [3] Growth Drivers - Corning's "Springboard" framework is expected to contribute over $3 billion in annualized top-line sales over the next three years, with a medium-term earnings lift anticipated [2] - The optical segment is projected to reach $4-5 billion in sales, representing 40% of total turnover, driven by a 25% CAGR in data center growth over the next five years [2] Valuation - The target price for Corning's shares is set at $36 based on a P/E multiple of 16x, with potential to reach $55 per share using a sector median FWD P/E of 24.5x, indicating the company is currently undervalued [4] Market Position - Corning holds a leading position in technical glass, with optical fiber accounting for 30% of sales and display glass (TVs) representing approximately 26% of sales [2]

Some stocks fly under the radar of investors even as they quietly dominate the industry in which they operate. These stealth stocks rise to the top by developing competitive advantages. This allows them to take market share from competitors and deliver strong financial results.Wall Street analysts who cover specific economic sectors and their competing stocks might notice the dominance of a particular company. However, retail investors often miss out. Lack of media coverage and attention to certain stocks a ...

Core Viewpoint - Corning has raised its second-quarter sales forecast due to the demand for generative artificial intelligence solutions, leading to a significant increase in its stock price and market capitalization [1][2]. Sales Forecast - Corning expects core sales of approximately $3.6 billion for the second quarter, which is $200 million higher than previous estimates, resulting in a 5.88% sales increase [2]. - The stock price surged from $38.50 to around $44.20 following the announcement [2]. Valuation Metrics - Corning's stock is currently rated with a "D" on valuation, primarily due to a high price-to-earnings GAAP multiple of nearly 60 times [2][3]. - The market capitalization increased by $4.67 billion to $37.88 billion, raising concerns about stretched valuations [2]. Growth Catalysts - The strong adoption of Corning's optical connectivity products for GenAI is a key growth driver, with plans to add over $3 billion in annualized sales over the next three years under the "Springboard" initiative [7]. - The company anticipates cyclical factors and secular trends will support sales growth from Q2 through the next three years [7]. - Corning expects automotive glass sales to triple between 2023 and 2026, contingent on sector trends [7]. Financial Performance Metrics - Corning's revenue growth year-over-year is reported at -9.51%, with forward growth projected at 0.20% [6]. - EBITDA growth year-over-year is -12.45%, with forward growth expected at 3.36% [6]. - The diluted EPS growth year-over-year is -31.98%, with forward growth projected at 1.95% [6]. Market Position - Corning is positioned as a beneficiary of the AI boom, alongside companies like Coherent and Celestica, as demand for hardware to support AI computational processing rises [1]. - The company is seeing renewed investments from carrier customers in optical communications, which is expected to contribute positively to its sales [7].

Core Insights - Corning Incorporated (GLW) has revised its second-quarter earnings outlook, expecting core sales to reach approximately $3.6 billion, a 6% increase from the previous forecast of $3.4 billion [1] - The expected core earnings per share (EPS) are projected to be at the high end or slightly above the prior guidance range of 42-46 cents, indicating year-over-year growth [1] Market Performance - Corning's shares have increased by 22.9% over the past year, while the industry has seen a growth of 74.2% [3] Demand Drivers - The outperformance is attributed to rising demand for Corning's optical product portfolio, particularly for generative AI applications, which require fiber optic solutions for data transmission [2] - Corning anticipates that its Springboard framework will contribute over $3 billion in annualized sales over the next three years, supported by favorable cyclical and secular trends [2] Market Position - Corning maintains an optimistic outlook across its markets, backed by strong market positions, innovative product offerings, and robust customer relationships [2] - The company is well-positioned to capitalize on favorable demand trends, expecting solid incremental profit and cash flow in the upcoming quarter [2]

Material science firm Corning (NYSE:GLW) stock jumped after it raised second-quarter guidance.The maker of fiber optic cabling is now considered an artificial intelligence (AI) play.Management said sales for the current quarter will be $3.6 billion, up from a previous estimate of $3.4 billion, with earnings at the high range of between 42-46 cents per share.GLW stock was due to open this morning at $43.44 per share, a market capitalization of $37 billion on expected sales of $12.4 billion. The company will ...

Corning (GLW) shares ended the last trading session 12% higher at $43.05. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.1% gain over the past four weeks.The uptrend in share prices can be primarily attributable to the bullish preliminary results for the second quarter of 2024. Management currently expects second-quarter revenues to be about $3.6 billion, exceeding its earlier guidance of $3.4 billion. The impro ...

Corning shares are up more than 12% Monday after the company raised its second-quarter guidance, setting it on track for its best trading day since March 2020.The company, known for developing the Gorilla Glass used for Apple iPhones and other phones, credits the outperformance to demand for its optical connectivity products that power networks that run generative artificial intelligence."We've invented new fibers, new cables, new connectors and new custom integrated optical solutions to dramatically reduce ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Loading...Loading...Ritholtz Wealth Management’s Josh Brown identified an under-the-radar stock that he believes will play an essential role in the AI, data center buildout story.What Happened: Thursday on CNBC’s “Fast Money Halftime Report,” Brown made the case for buying Corning Inc GLW shares at current levels, suggesting that the stock is being criminally overlooked as an AI play.“You absolutely cannot do GPUs, cannot do data center buildouts without glass,” Brown said. Corning is a materials company fo ...

Vertigo3d It pays to buy into quality companies that have been misunderstood by the market due to temporary headwinds. This gives smart value investors the opportunity to layer into these stocks before the market catches onto a rebound. Such opportunities debunk the efficient market theory, in which assets are always appropriately priced. Rather than being efficient, I'd remark that the market is so focused on short-term results that it often misses the forest for the trees. Such appears to have been the ca ...