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Corning shares drop after Q2 results as AI outlook disappoints
The company guided third-quarter core sales to $4.9 billion to $5.0 billion, about 16% higher year over year, while Optical Communications growth slowed to 32% in Q2.
Corning (GLW) shares fell as much as 20% intraday on July 28 after the company reported second-quarter results, a sharp one-day drop for a stock many investors had treated as a high-conviction proxy for AI infrastructure spending, according to Yahoo Finance.
Even with momentum in its AI-linked business, Optical Communications, Corning said that segment grew 32% in the second quarter to more than $2 billion. The outlet noted the sell-off was driven more by guidance and the outlook than by the quarter itself.
Corning guided third-quarter core sales to $4.9 billion to $5.0 billion, implying 16% year-over-year growth, which came in a touch below elevated consensus estimates cited in the report. Optical Communications growth also decelerated from 36% in the first quarter to 32% in the second, signaling potential slowing after a period of fast expansion, the outlet said.
The article also highlights how the stock has already rallied, with shares up 61.9% year to date and 126.5% over the past 52 weeks, and it points to valuation metrics including a 38.58x forward price-to-earnings ratio versus a sector median of 23.04x. Corning’s price-to-sales ratio is also cited as 6.83x versus a sector median of 3.26x.