Why Apple's Glass Supplier Corning Shares Are Jumping Premarket Today

Corning Incorporated GLW shares are trading higher after the company increased its second-quarter core sales guidance.

The company now projects core sales to be approximately $3.6 billion (vs. consensus of $3.41 billion), an increase from the previous guidance of $3.4 billion.

Core EPS is expected to reach the high end of, or slightly exceed, the management’s guided range of $0.42 to $0.46 (vs. estimate of $0.45).

The company anticipates over $3 billion in annualized sales growth over the next three years, fueled by both cyclical factors and secular trends.

Wendell Weeks, chairman and chief executive officer, said, “The outperformance was primarily driven by the strong adoption of our new optical connectivity products for Generative AI. These results reinforce our confidence in ‘Springboard’ – Corning’s plan to add more than $3 billion in annualized sales in the next three years as cyclical factors and secular trends combine.”

“We’ve positioned the company to capture significant growth with powerful incremental profit and cash flow. Because of our confidence in Springboard, we began buying back our shares in the second quarter.”

Management reaffirms that first-quarter sales will be the lowest of the year and anticipates higher sales throughout 2024 due to improving market conditions.

Corning projects to report second-quarter 2024 results on July 30, 2024.

Corning stock gained close to 10% in the last 12 months. Investors can gain exposure to the stock via First Trust S&P 500 Diversified Dividend Aristocrats ETF KNGZ and ProShares Smart Materials ETF TINT.

Price Action: GLW shares are up 6.40% at $40.90 premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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