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Corning Incorporated (GLW), based in Corning, New York, is a leading materials science and technology company serving markets like optical communications, mobile electronics, display technology, automotive, and life sciences, with a market cap of $38.5 billion. It is set to release its fiscal 2024 Q3 earnings results before the market opens on Tuesday, Oct. 29.
Ahead of the event, analysts expect Corning to report a profit of $0.52 per share, up 15.6% from $0.45 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in two of the last four quarters while missing on the other two occasions.
Corning Incorporated’s EPS of $0.47 for the last reported quarter beat the consensus estimate by 2.2%, driven primarily by the strong adoption of new optical connectivity products for generative AI.
Over the longer term, analysts expect Corning Incorporated to report an EPS of $1.91 in fiscal 2024, up 12.4% from $1.70 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 19.4% annually to $2.28.
Over the past 52 weeks, GLW stock has soared 48.5%, surpassing the broader S&P 500 Index's ($SPX) 34.8% gains and the Technology Select Sector SPDR Fund’s (XLK) 36.8% returns during the same period.
Corning's robust price performance stems from its strategic focus on high-growth markets like fiber-optic communications, advanced display technologies, and specialty materials. The company's leadership in critical sectors, including 5G infrastructure, AI-driven optical communications, and emissions control, has positioned it to capitalize on favorable macro trends. Besides, its innovations, such as its next-gen AI data center products and its long-standing expertise in glass and materials science, continue to drive demand across multiple industries.
However, despite beating Wall Street’s revenue and EPS estimates, GLW shares dipped more than 6% on Jul. 30 after the company reported its Q2 earnings results. Investors were disappointed by Corning's Q3 forecast, which projected core sales of approximately $3.7 billion, falling short of the $3.8 billion consensus. Additionally, the company's guidance for core EPS, expected to range between $0.50 and $0.54, added to the market's concerns.
The current consensus opinion on GLW stock is “Moderate Buy” overall. Out of 12 analysts covering the stock, eight suggest a “Strong Buy,” and the remaining four advise a “Hold.” This consensus is slightly more bullish than two months ago when seven analysts recommended a “Strong Buy” rating.
Furthermore, the mean price target of $47 represents a potential upside of 5.4% from GLW’s current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
