Corning (GLW) issued Q3 guidance above estimates, supported by strong demand for optical products used in AI data centers, Oppenheimer said Wednesday in a report.
On Tuesday, Corning forecast Q3 core sales of $4.9 billion to $5 billion and earnings of $0.85 and $0.89 a share, both above expectations, Oppenheimer said.
In Q2, core sales rose 17% to $4.74 billion, above the FactSet consensus of $4.63 billion, while core earnings climbed to $0.78, topping the $0.76 estimate, the report said.
Enterprise-network sales jumped 65% as generative-AI-related revenue doubled, while the optical segment posted a record net margin of 21%, Oppenheimer said. Corning expects similar enterprise-network growth in Q3 "as customer demand continues to exceed supply," the report said.
Oppenheimer cut its price target to $200 from $230 to reflect "volatility" in AI capital spending and reiterated its outperform rating.
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