Core Insights - Carillon Tower Advisers released its third-quarter 2025 investor letter for the Carillon Eagle Growth & Income Fund, highlighting a 13.7% year-to-date return for the S&P 500 Index, driven by growth and momentum factors [1] - The market's current performance is heavily reliant on AI deployment, indicating potential vulnerabilities if this trend falters [1] Company Highlights - Corning Incorporated (NYSE:GLW) was noted for its strong performance, with a one-month return of 1.51% and a remarkable 86.25% increase in value over the past 52 weeks, closing at $87.93 per share with a market capitalization of $75.388 billion [2] - Corning's outperformance is attributed to robust second-quarter earnings and positive forward guidance, particularly in fiber optics and related technologies essential for AI infrastructure development [3] - In the third quarter of 2025, Corning's core sales grew 14% year-over-year, reaching $4.27 billion, reflecting strong market demand [4]

Core Insights - The article does not provide any specific information regarding companies or industries, focusing instead on a newsletter sign-up confirmation [1] Summary by Categories - **Company Information**: No relevant company information is provided in the article [1] - **Industry Insights**: No relevant industry insights are provided in the article [1]

Core Insights - The London Company Income Equity Strategy reported a 6.0% gross (5.8% net) appreciation in its portfolio for Q3 2025, outperforming the Russell 1000 Value Index which increased by 5.3% [1] - The strong performance was attributed to positive stock selection, although sector exposure posed some headwinds [1] Company Focus: Corning Incorporated (NYSE:GLW) - Corning Incorporated's stock experienced a one-month return of -2.14% but saw a significant 76.64% increase over the past 52 weeks, closing at $85.21 with a market capitalization of $73.056 billion on November 4, 2025 [2] - The company reported a 14% year-over-year sales growth to $4.27 billion in Q3 2025, driven by strong demand in its Optical Communications segment, particularly for GenAI-related products [4] - Corning's diversified portfolio is well-positioned to benefit from increasing data speed and bandwidth requirements, which are expected to drive further demand [3]

Financial Data and Key Metrics Changes - First-quarter revenue reached $978 million, a 22% increase year-over-year and an 8% increase from Q4 [5][9] - Non-GAAP earnings per share (EPS) were $2.92, reflecting strong revenue flow to the bottom line [5][9] - Gross margin was 12.3%, down 30 basis points from Q4, but in line with expectations [11] Business Line Data and Key Metrics Changes - Optical communications revenue was $747 million, up 19% year-over-year and 8% from Q4 [9][10] - Telecom revenue hit a record $412 million, surging 59% year-over-year and 15% from Q4, primarily driven by data center interconnect (DCI) products [9][10] - DCI revenue was $138 million, representing a 92% increase year-over-year and a 29% increase from Q4 [10] - DataCom revenue totaled $273 million, down 17% year-over-year but only 1% down from Q4, indicating stronger-than-expected performance [10] - Non-optical communications revenue was $231 million, up 3% year-over-year, driven by high-performance computing (HPC) revenue of $15 million [10] Market Data and Key Metrics Changes - Automotive revenue was $122 million, up 19% year-over-year but down 5% from Q4 [10] - Industrial laser revenue was $40 million, up 12% year-over-year and flat sequentially [10] Company Strategy and Development Direction - The company is optimistic about continued growth in Telecom driven by DCI expansion and strong DataCom demand [8][14] - Construction of Building 10, totaling 2 million square feet, is on track for completion by the end of calendar 2026, with portions expected to be completed by mid-2026 [8][12] - The introduction of a new revenue category for HPC products is expected to significantly contribute to growth [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand trends across multiple product categories and customers [62] - The company anticipates revenue growth in Q2 to be between $1.05 billion and $1.1 billion, representing a 29% increase year-over-year at the midpoint [14] - Management acknowledged ongoing component constraints but remains optimistic about overall demand trends [6][66] Other Important Information - The company ended Q1 with cash and short-term investments of $969 million, up $35 million from Q4 [12] - Capital expenditures of $45 million were above maintenance levels due to ongoing construction of Building 10 [12] Q&A Session Summary Question: What is embedded in your December quarter outlook for DataCom? - Management refrained from commenting on individual components but emphasized the company's position to capitalize on the generational transition to photonics [17] Question: Does the HPC program take into account other customer engagements? - The HPC program is expected to grow significantly, with potential for multiple customers in the future [20][23] Question: How do the ramps of the HPC customer compare to the new Telecom customer? - The HPC product is complex and has a slower ramp-up, while the Telecom product is new and growing in the market [28] Question: What are the main drivers for the projected $100 million increase in revenue? - Key growth drivers include the HPC program, new Telecom products, and strong DCI performance [32] Question: How many customers contributed to the sequential growth in Telecom? - The growth was driven by a mix of customers across traditional Telecom and DCI, not reliant on any single customer [36] Question: What is the status of the share repurchase program? - The company has a 10b5-1 Plan in place and is focused on investing in future growth, including capital expenditures for Building 10 [44][50] Question: Is the component supply situation improving? - Management believes the supply situation will improve, although some components remain in tight supply [66]

Financial Data and Key Metrics Changes - First-quarter revenue reached $978 million, a 22% increase year-over-year and an 8% increase from Q4 [5][9] - Non-GAAP earnings per share (EPS) were $2.92, reflecting strong revenue flow to the bottom line [5][11] - Gross margin was 12.3%, down 30 basis points from Q4, but in line with expectations [11] - Operating cash flow for the quarter was $103 million, with cash and short-term investments totaling $969 million, up $35 million from Q4 [12] Business Line Data and Key Metrics Changes - Optical communications revenue was $747 million, up 19% year-over-year and 8% from Q4, with telecom revenue hitting a record $412 million, a 59% increase year-over-year and 15% from Q4 [9][10] - Data center interconnect (DCI) revenue was $138 million, a 92% increase year-over-year and 29% from Q4 [10] - DataCom revenue totaled $273 million, down 17% year-over-year but only 1% from Q4, indicating stronger-than-expected performance from key customers [10][11] - Non-optical communications revenue was $231 million, up 3% year-over-year, driven by high-performance computing (HPC) revenue of $15 million [10] Market Data and Key Metrics Changes - The company anticipates strong growth in HPC as the program ramps up, contributing significantly to future revenue [13] - Automotive revenue was $122 million, up 19% year-over-year but down 5% from Q4 [10] - Industrial laser revenue remained flat at $40 million, with a 12% increase year-over-year [10] Company Strategy and Development Direction - The company is focused on expanding its capacity with the construction of Building 10, expected to be completed by the end of calendar 2026, to support rapid growth [8][12] - Management is optimistic about continued growth in telecom driven by DCI expansion and strong DataCom demand [8][13] - The introduction of a new revenue category for HPC products is seen as a significant growth driver moving forward [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong business momentum into the second quarter, projecting revenue between $1.05 billion and $1.1 billion, representing a 29% year-over-year growth at the midpoint [13][14] - The company is optimistic about demand trends across multiple product categories and believes it is well-positioned to capitalize on growth opportunities [8][59] Other Important Information - The share repurchase program was less active this quarter, with only 970 shares repurchased, as capital is being allocated towards growth investments [12][40] - The company maintains a 10b5-1 plan for share repurchases, focusing on investing in future growth and capacity expansions [40][41] Q&A Session Summary Question: What is embedded in your December quarter outlook for DataCom? - Management refrained from commenting on individual components but emphasized the company's position to capitalize on the ongoing transition to photonics [16][17] Question: Does the HPC program take into account other customer engagements? - The HPC program is seen as a separate category with potential for growth, and management is optimistic about expanding customer engagements in this area [18][19] Question: How do the ramps of the HPC customer compare to the new telecom customer? - The ramps are different due to the nature of the products, with HPC being complex and requiring time to scale, while telecom products are newer and ramping up [24][25] Question: What are the main drivers for the projected revenue increase? - Management highlighted multiple growth drivers including HPC, new telecom products, and strong DCI performance, indicating no shortage of demand [28][29] Question: Can you elaborate on the share repurchase activity? - The share repurchase was driven by a 10b5-1 plan, with a focus on investing in growth rather than active repurchases in the open market [40][41] Question: Is the component supply situation improving? - Management indicated that while some components remain in tight supply, they expect improvements as suppliers ramp up capacity [62][63]

Core Insights - The CPO concept has experienced a collective pullback for the second consecutive day, with notable declines in stocks such as Tianfu Communication, Guangku Technology, and others [1] - Zhongji Xuchuang reported a revenue of 10.216 billion yuan for Q3 2025, marking a year-on-year increase of 56.83%, and a net profit of 3.137 billion yuan, up 124.98% [1] - Xinyi Sheng's Q3 2025 revenue reached 6.068 billion yuan, reflecting a year-on-year growth of 152.53%, while net profit surged by 205.38% to 2.385 billion yuan [1] - Citigroup noted that Xinyi Sheng's Q3 net profit fell short of investor expectations, but anticipated a significant rebound in Q4 due to order deliveries [1] Company Performance - Zhongji Xuchuang's revenue for the first three quarters of 2025 was 25.005 billion yuan, a 44.43% increase year-on-year, with net profit at 7.132 billion yuan, up 90.05% [1] - Xinyi Sheng's total revenue for the first three quarters reached 16.505 billion yuan, a remarkable year-on-year growth of 221.70%, with net profit soaring to 6.327 billion yuan, up 284.37% [1] Market Reaction - Citigroup expects a negative market reaction to Xinyi Sheng's Q3 results but views any resulting stock price decline as a potential buying opportunity, citing management's comments on delayed customer orders impacting performance [1] - The stock performance of various companies in the CPO sector has shown significant declines, with Tianfu Communication down 4.69% and Xinyi Sheng down 3.66% [2]

Core Insights - Corning Incorporated reported third-quarter 2025 results that exceeded estimates, with adjusted EPS of $0.67 compared to the consensus of $0.66 and revenue of $4.27 billion, a 14% year-over-year increase, surpassing the forecast of $4.24 billion [1] - Despite the positive results, shares fell more than 3% intra-day on Tuesday, indicating market skepticism [1] - For the fourth quarter, Corning guided revenue to approximately $4.35 billion, above Street expectations of $4.26 billion, and projected adjusted EPS between $0.68 and $0.72, exceeding the consensus of $0.67 [1] Revenue Growth - Optical Communications segment led the growth, with enterprise sales climbing 58% year over year, driven by strong demand for new Gen AI products, resulting in a 33% increase in segment revenue to $1.65 billion [2] - The company expects to achieve its Springboard operating margin target of 20% in Q4 2025, one year ahead of schedule [2] Operating Margins - Core operating margin expanded by 130 basis points year over year to 19.6% in the third quarter [2]

Financial Data and Key Metrics Changes - For Q3 2025, sales increased by 14% year-over-year to $4.27 billion, while EPS grew by 24% to $0.67, outpacing sales growth [4][20] - Operating margin expanded by 130 basis points to 19.6%, and ROIC increased by 160 basis points to 13.4% [4][20] - Free cash flow reached $535 million, indicating strong cash flow growth [4][20] Business Line Data and Key Metrics Changes - Optical Communications sales grew by 33% year-over-year to $1.65 billion, with enterprise networks business growing by 58% [21][22] - Display sales were $939 million, with net income of $250 million, both slightly up from the previous quarter [24] - Specialty Materials sales increased by 13% year-over-year to $621 million, driven by premium glass innovations [26] - Automotive sales were $454 million, up 6% year-over-year, primarily due to a stronger light-duty vehicle market in China [27] - Solar segment sales increased by 46% year-over-year, driven by additional polysilicon capacity coming online [29] Market Data and Key Metrics Changes - The enterprise business sales for Q3 2025 were $831 million, annualized to $3.3 billion, reflecting a $2 billion increase compared to 2023 [22] - The carrier networks business also saw year-over-year growth, with expectations of reaching a billion-dollar opportunity by the end of the decade [23] Company Strategy and Development Direction - The company is executing its Springboard plan, which aims to significantly increase sales and improve profitability, with a target operating margin of 20% by the end of 2026 [4][7] - The company is focusing on innovations in GenAI and expanding its manufacturing capabilities to meet growing demand [9][10] - The solar business is expected to build a $2.5 billion revenue stream by 2028, with a strong foundation already established [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the Springboard operating margin target a year ahead of schedule, indicating strong sales growth and profitability [30][34] - The company anticipates continued demand for its innovations, particularly in the AI and solar sectors, which are expected to drive future growth [10][18] Other Important Information - The company has committed customers for more than 80% of its solar capacity for the next five years, indicating strong demand [16][18] - The company plans to invest approximately $1.3 billion in CapEx in 2025, focusing on organic growth opportunities [31][32] Q&A Session Summary Question: Inquiry about optical sales growth and timing effects - Management noted that the data center business has seen significant growth, with a current run rate of $3.3 billion, and expects this growth to continue [39][40] Question: Operating margin expectations beyond Q4 - Management indicated that while ramp costs are currently impacting margins, they expect to see improvements as production scales up [48][49] Question: Impact of downstream solar inventory on ramp - Management acknowledged that while there is a demand for U.S. origin products, the overall industry dynamics do not significantly impact their position as a preferred supplier [54][55] Question: Optical Communications supply constraints - Management confirmed that demand for their products is tight, and they are in discussions with customers to manage capacity and investments [68][69] Question: Long-term revenue opportunities and Springboard plan updates - Management indicated that they will provide updates on the Springboard plan as they continue to perform well and assess future growth opportunities [88][89]

Financial Data and Key Metrics Changes - For Q3 2025, sales increased by 14% year-over-year to $4.27 billion, while EPS grew by 24% to $0.67, outpacing sales growth [4][19] - Operating margin expanded by 130 basis points to 19.6%, and ROIC increased by 160 basis points to 13.4% [4][19] - Free cash flow reached $535 million, indicating strong cash generation capabilities [4][19] Business Line Data and Key Metrics Changes - **Optical Communications**: Sales grew by 33% year-over-year to $1.65 billion, with enterprise networks business sales increasing by 58% [20][22] - **Display**: Q3 sales were $939 million, with net income of $250 million, both slightly up from the previous quarter [22] - **Specialty Materials**: Sales increased by 13% year-over-year to $621 million, driven by premium glass innovations [24] - **Automotive**: Sales were $454 million, up 6% year-over-year, primarily due to a stronger light-duty vehicle market in China [25] - **Solar Business**: Segment sales increased by 46% year-over-year, driven by additional polysilicon capacity coming online [26] Market Data and Key Metrics Changes - The enterprise business for Optical Communications is expected to grow at a CAGR of 30% from 2023 to 2027, with Q3 2025 sales annualized at $3.3 billion [20] - The carrier networks business is anticipated to become a billion-dollar opportunity by the end of the decade [21] Company Strategy and Development Direction - The company is executing its Springboard plan, which aims to significantly increase sales and improve profitability, with a target operating margin of 20% by the end of 2026 [6][28] - The company is focusing on expanding its presence in the solar industry, aiming for a $2.5 billion revenue stream by 2028 [17][26] - The partnership with Apple for Mobile Consumer Electronics is expected to create long-term growth opportunities [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the Springboard operating margin target a year ahead of schedule, indicating strong operational performance [28][32] - The company anticipates continued demand for its innovations, particularly in GenAI and solar sectors, which are expected to drive future growth [9][12][17] Other Important Information - The company has committed customers for over 80% of its solar capacity for the next five years, indicating strong demand [17][26] - The company plans to invest approximately $1.3 billion in CapEx in 2025 to support growth initiatives [29][30] Q&A Session Summary Question: On the optical sales growth expectations - Management noted that the data center business has seen significant growth, with a current run rate of $3.3 billion, and expects this growth to continue [35][36] Question: Regarding operating margin expectations beyond Q4 - Management indicated that while ramp costs are currently impacting margins, they expect to see improvements as production scales up [44][46] Question: Impact of downstream inventory on solar ramp - Management confirmed that while there was a large amount of inventory brought into the U.S., their focus remains on U.S. origin products, which positions them favorably [52][53] Question: Headroom for margins in Optical Communications - Management expressed optimism about continued margin improvements driven by innovation and capacity additions [55][58] Question: Long-term revenue opportunities and Springboard plan updates - Management acknowledged the need for an update on the Springboard plan due to strong performance and indicated that they would provide more details in the future [78][79]

Third-Quarter 2025 Investor Call Corning Reports Third-Quarter 2025 Financial Results October 28, 2025 Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or information and contain words such as "will," "believe," "anticipate," "expect," "intend," "plan," "seek," "see," "would," "target," "estimate," "forecast" or similar expressions are forward-looking statements. These forward-looking statements are made ...