Second-Quarter 2024 Performance - Corning reported Q2 2024 core sales of $3.60 billion, a 4% increase year-over-year[6] - The company's Q2 2024 core EPS was $0.47, also a 4% increase year-over-year[6] - Q2 2024 gross margin was 38%, a 170 bps increase year-over-year[6] - Adjusted free cash flow for Q2 2024 was $353 million[6] Segment Performance - Optical Communications Q2 sales were $1.1 billion, up 4% year-over-year, with Enterprise Network sales up 42% driven by AI-related connectivity solutions[25] - Display Technologies Q2 sales were $1.0 billion, up 9% year-over-year, with net income up 24%[26] - Specialty Materials Q2 sales were $501 million, up 18% year-over-year, and net income up 91%[28] - Environmental Technologies Q2 sales were $431 million, down 6% year-over-year, and net income down 9%[29] - Life Sciences Q2 sales were $249 million, up 8% year-over-year, and net income up 55%[30] - Hemlock and Emerging Growth Businesses Q2 sales were $296 million, down 21% year-over-year, with a net loss of $23 million[31] Forward Outlook - Q3 2024 sales are expected to be approximately $3.7 billion[32] - Q3 2024 EPS is projected to be between $0.50 and $0.54[32] - The company anticipates $1.2 billion in capital expenditures for full-year 2024[33] Springboard Plan - The "Springboard" plan targets a $3 billion+ sales opportunity over the next 3 years[10, 15] - The Enterprise business is expected to grow at a 25% CAGR from 2023 to 2027[23]

Financial Data and Key Metrics Changes - The company reported second quarter sales of $3.6 billion, an 11% sequential increase, returning to year-over-year growth [22][26] - EPS grew 24% sequentially to $0.47, exceeding previous guidance [11][22] - Gross margin improved by 110 basis points sequentially and 170 basis points year-over-year, reaching 37.9% [21][22] - Operating margin expanded by 190 basis points compared to the first quarter [11][22] Business Line Data and Key Metrics Changes - **Optical Communications**: Sales reached $1.1 billion, up 20% sequentially and 4% year-over-year, driven by a 42% increase in enterprise network sales due to AI-related connectivity solutions [22][23] - **Display Technologies**: Sales were $1 billion, up 16% sequentially and 9% year-over-year, with net income increasing by 28% sequentially [22][24] - **Specialty Materials**: Sales increased by 18% year-over-year to $501 million, with net income up 91% [25] - **Environmental Technologies**: Sales decreased by 6% year-over-year to $431 million, reflecting a down cycle in the Class 8 truck market [25] - **Life Sciences**: Sales grew by 8% year-over-year to $249 million, with net income up 55% [25] Market Data and Key Metrics Changes - The enterprise business in Optical Communications is expected to grow at a 25% compound annual growth rate from 2023 to 2027, driven by generative AI adoption [19] - The carrier business is beginning to recover as customers start ordering closer to current deployment levels [19][22] Company Strategy and Development Direction - The company is focused on its Springboard plan, aiming to add over $3 billion in annualized sales within the next three years [9][10] - The Springboard plan is expected to leverage cyclical and secular trends to drive demand for the company's capabilities [10][21] - The company is also refreshing its Board of Directors to align with the Springboard plan [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities presented by generative AI and the company's ability to meet increasing bandwidth demands [6][11] - The company anticipates continued strong performance in the third quarter, with sales expected to reach approximately $3.7 billion [26] - Management highlighted the importance of maintaining a strong balance sheet and returning cash to shareholders through share buybacks [27][28] Other Important Information - The company has initiated share buybacks in the second quarter and plans to continue in the third quarter [28][29] - The company expects to generate strong free cash flow, with capital expenditures for 2024 projected at $1.2 billion [27] Q&A Session Summary Question: Can you provide more details on the customers demanding Gen AI products and the visibility for sustaining this momentum? - Management indicated high visibility for growth due to established relationships and ongoing projects with customers, leading to new customer acquisitions [32][33] Question: How is the $8 billion Springboard opportunity split between carrier and enterprise? - The majority of the opportunity is expected to come from the enterprise segment, driven by changes in compute requirements due to generative AI [38] Question: What are the expectations for gross margin trends in the coming quarters? - Management expects gross margins to continue improving as sales increase, supported by existing capacity and technical capabilities [53] Question: What is the outlook for the carrier business and inventory levels? - The carrier business is showing signs of recovery, with order rates approaching deployment levels, indicating a positive trajectory [66][72] Question: How does the enterprise segment compare to the carrier segment in terms of margins? - The enterprise segment generally has higher margins than the carrier segment due to the customized solutions offered [68]

Company Performance - Corning reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.45 per share a year ago, representing an earnings surprise of 2.17% [1] - The company posted revenues of $3.6 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.21%, compared to year-ago revenues of $3.48 billion [1] - Over the last four quarters, Corning has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.54 on revenues of $3.7 billion, and for the current fiscal year, it is $1.94 on revenues of $14.23 billion [4] - The estimate revisions trend for Corning is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Communication - Components industry, to which Corning belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Another company in the same industry, Viav Solutions, is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year decline of 30%, with revenues anticipated to be $251.83 million, down 4.5% from the previous year [5][6]

FOR RELEASE – July 30, 2024 Exhibit 99 Corning Reports Strong Second-Quarter 2024 Financial Results, Exceeding April Guidance and Marking Return to Year-over-Year Sales Growth Outperformance was driven primarily by the strong adoption of new optical connectivity products for generative AI Management expects core sales to grow to ~$3.7 billion in the third quarter, with core EPS growing faster than sales and in the range of $0.50 to $0.54 Corning and Lumen Technologies reach an agreement to reserve 10% of Co ...

The upcoming report from Corning (GLW) is expected to reveal quarterly earnings of $0.46 per share, indicating an increase of 2.2% compared to the year-ago period. Analysts forecast revenues of $3.49 billion, representing an increase of 0.3% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 2.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe ...

Core Insights - Corning Incorporated (GLW) is expected to report its second-quarter 2024 results on July 30, with a trailing four-quarter earnings surprise of 0.22% on average and a 5.56% surprise in the last quarter [1] - The company is likely to experience year-over-year revenue growth due to strong demand across various sectors, including mobile consumer electronics, generative AI applications, and automotive [1] - Corning's focus on enhancing profitability and cash flow, along with opportunities in emerging markets for automotive glass solutions and pharmaceutical packaging, is seen as a positive factor [1] Factors at Play - Corning has expanded its cover glass portfolio with the introduction of Corning Gorilla Glass 7i, which offers improved drop protection and scratch resistance, targeting the mid-range smartphone market [2] - The deployment of Corning's Ascent Fixed Bed Bioreactor systems by the National Institute for Bioprocessing Research and Training in Ireland is expected to positively impact upcoming results [2] Revenue Estimates - The optical communication segment is estimated to generate $950.8 million in revenue, reflecting a 10.8% year-over-year decline but indicating market recovery with modest sequential growth [3] - The Display Technologies segment is projected to achieve $930.3 million in revenue, showing marginal growth from the previous year's $928 million [3] - The Specialty Materials segment is expected to reach $478.1 million, indicating a strong 13% year-over-year growth, while Environmental Technologies revenues are projected at $460.1 million [3] Consensus Estimates - The Zacks Consensus Estimate for Corning's revenues in the June quarter is $3.49 billion, showing modest growth from $3.48 billion in the same quarter last year [4] - The consensus estimate for adjusted earnings per share is 46 cents, an increase from 45 cents in the year-ago quarter [4] Earnings Predictions - Corning is predicted to likely beat earnings expectations, supported by a positive Earnings ESP of +1.59% and a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - The market anticipates Corning (GLW) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending June 2024, with the earnings report expected on July 30, 2024 [1] Earnings Expectations - Corning is projected to post quarterly earnings of $0.46 per share, reflecting a year-over-year change of +2.2% [2] - Revenues are expected to reach $3.49 billion, which is an increase of 0.3% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised 2.69% higher in the last 30 days, indicating a positive reassessment by analysts [2] - The Most Accurate Estimate for Corning is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.59% [5] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [4] - Corning currently holds a Zacks Rank of 1, suggesting a high likelihood of beating the consensus EPS estimate [6] Historical Performance - In the last reported quarter, Corning exceeded the expected earnings of $0.36 per share by delivering $0.38, resulting in a surprise of +5.56% [7] - Over the past four quarters, Corning has beaten consensus EPS estimates only once [7] Conclusion - Corning is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond just earnings results [8]

Group 1 - Corning (GLW) has a year-to-date return of approximately 49.4%, outperforming the average gain of 31.7% in the Computer and Technology sector [2] - Corning currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [1] - The Zacks Consensus Estimate for Corning's full-year earnings has increased by 3.5% over the past three months, reflecting improving analyst sentiment [2] Group 2 - Corning is part of the Communication - Components industry, which has seen an average gain of 48% year-to-date, indicating strong performance within its specific industry [3] - In comparison, American Superconductor (AMSC), another outperforming stock in the Computer and Technology sector, has a year-to-date return of 146.2% and a Zacks Rank of 1 (Strong Buy) [2][3] - The Electronics - Miscellaneous Components industry, to which AMSC belongs, is currently ranked 180 and has only gained 9.2% year-to-date, highlighting the relative strength of Corning's industry [3]

Core Insights - The article highlights the expanding opportunities in the artificial intelligence (AI) sector, particularly focusing on Corning as a key player in AI infrastructure, which is often overlooked compared to larger companies like Nvidia, Microsoft, and Amazon [1][2]. Group 1: Corning's Role in AI - Corning, with a market capitalization of $36.8 billion, manufactures components essential for consumer electronics and data centers, positioning itself as a significant contributor to the AI boom [1][2]. - The company specializes in glass components, crucial for fiberoptic cables that enable fast data transmission, which is vital for AI development requiring hyperscale infrastructure [2][3]. - Corning's new RocketRibbon cable offers a 60% smaller diameter than competitors while maintaining a high fiber count, providing substantial space savings for data center operators [3]. Group 2: Financial Performance and Forecast - Corning reported $3.2 billion in revenue for Q1 2024, a 3% decline year-over-year, with its optical communications segment contributing $930 million, down 17% [4]. - The company has revised its Q2 revenue forecast from $3.4 billion to $3.6 billion, driven by increased sales of optical connectivity solutions for AI [5]. - Corning's 'Springboard' framework aims to add $3 billion in annual revenue in the coming years, representing a 22% growth on its 2023 revenue of $13.6 billion [4]. Group 3: Investment Potential - Corning's stock is considered relatively cheap, with a P/E ratio of 25.8, which is a 20% discount compared to the Nasdaq-100 index's P/E ratio of 32.3 [6]. - The company declared a second-quarter dividend of $0.28 per share, yielding 2.6%, which is higher than the dividends offered by Nvidia and Microsoft [7]. - Corning presents a compelling opportunity for investors looking to diversify their AI holdings or enter the AI space for the first time [8].

Core Insights - Corning's share price has increased by approximately 46% since the last article, outperforming the S&P 500's 17% gain, following an upward revision of Q2 guidance [2][3] - Management forecasts Q2 sales of about $3.6 billion, exceeding previous guidance of $3.4 billion, with core EPS expected at the high end of $0.42 to $0.46 [3] - The company is positioned for significant growth, expecting over $3 billion in annualized sales growth in the next three years, driven by cyclical and secular trends [3][9] Financial Performance - Corning's optical communications segment is experiencing strong demand, particularly from data centers, which is driving revenue growth [4][5] - The company has a strong balance sheet with cash and equivalents of $1.36 billion and debt of $7.37 billion, rated BBB+ [8] - Corning has a dividend yield of 2.51% with a 5-year dividend growth rate of 8.06%, although the payout ratio is slightly above 67% [8] Market Position - Corning commands a 17.7% share of the fiber optic cable market, which is projected to grow at a CAGR of 8.46% from 2024 to 2029 [5] - The company controls approximately half of the global display glass market, benefiting from advanced production technologies [7] - Corning's manufacturing facilities are strategically located near clients, ensuring long-term relationships and cost savings [7] Product Innovation - Corning's new optical connectivity products are gaining traction, particularly in the context of Generative AI and data center applications [3][4] - The company has developed pre-connectorized structured cabling solutions that significantly reduce installation time and cable size [4] - Corning's partnership with Apple for durable glass in iPhone 15 models highlights its innovation in consumer electronics [6] Future Outlook - Management believes the first quarter of 2024 will be the lowest for the year, with expectations of improvement and strong market positions [9] - The company is poised to deliver substantial incremental profits and cash flow as it captures growth opportunities [9] - Despite recent share price increases, the stock is viewed as somewhat overvalued, leading to a current rating of Hold [9]