Corning Stock Drops After Q3 Guidance Miss: CEO Highlights 'New Optical Connectivity Products For Generative AI'
Portfolio Pulse from Anusuya Lahiri
Corning Inc (NYSE:GLW) reported a fiscal Q2 2024 core sales growth of 4% YoY to $3.60 billion, beating estimates. Core EPS of $0.47 also surpassed expectations. Despite this, the stock dropped 8.6% due to lower-than-expected Q3 guidance. Key segments showed mixed performance, with strong growth in Optical Communications and Specialty Materials, but declines in Environmental Technologies and Hemlock. CEO highlighted new optical connectivity products for generative AI and a new agreement with Lumen Technologies Inc (NYSE:LUMN).
July 30, 2024 | 2:33 pm
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Corning Inc reported better-than-expected Q2 results but provided lower-than-expected Q3 guidance, leading to an 8.6% drop in stock price. Strong performance in Optical Communications and Specialty Materials was offset by declines in other segments.
Despite beating Q2 estimates, the lower-than-expected Q3 guidance has led to a significant drop in Corning's stock price. Investors are likely concerned about the company's future performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Corning's CEO highlighted a new agreement with Lumen Technologies to use Corning's new gen-AI fiber and cable system for Lumen's AI-enabled data centers. This partnership could positively impact Lumen's future growth.
The new partnership with Corning to use advanced AI-related products could enhance Lumen's capabilities and growth prospects, potentially leading to a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50