Corning Beats On Q4: AI Boom Powers 51% Optical Sales Surge, Stock Climbs

Corning Inc GLW shares are trading higher after the company reported fourth-quarter 2024 results.

Core sales grew 18% year-on-year to $3.87 billion, beating the analyst consensus estimate of $3.76 billion.

The Apple glass supplier’s core EPS of 57 cents beat the analyst consensus estimate of 56 cents.

Display Technologies’ sales grew by 12% Y/Y to $971 million. Optical Communications sales increased by 51% Y/Y to $1.368 billion, led by continued strong adoption of Corning’s new Gen AI products.

Specialty Materials sales rose 9% to $515 million in the quarter. Life Sciences sales increased by 3% to $250 million.

Environmental Technologies sales declined by 7% to $397 million. Hemlock and Emerging Growth Businesses sales increased 5% to $373 million in the quarter.

The core gross margin was 38.6%, and the adjusted free cash flow was $409 million in the quarter.

Ed Schlesinger, executive vice president and chief financial officer, said, “We also successfully implemented double-digit price increases in Display Technologies to ensure we can maintain stable U.S. dollar net income in a weaker yen environment, and we expect to deliver segment net income of $900 million to $950 million in 2025 and to maintain net income margin of 25%.”

Outlook: Corning expects first-quarter core sales growth of 10% Y/Y to $3.6 billion (vs. consensus of $3.53 billion) and core EPS of $0.48-$0.52 vs. street view of $0.48.

On March 18, Corning plans to provide an update to its “Springboard” plan, aiming to generate over $3 billion in additional annualized sales and achieve a 20% operating margin by the end of 2026.

Investors can gain exposure to GLW via ProShares Smart Materials ETF TINT and Professionally Managed Portfolios Otter Creek Focus Strategy ETF OCFS.

Price Action: GLW shares are up 5.39% at $53.99 premarket at the last check Wednesday.

Read Next: