Corning forecasts upbeat quarterly results on robust demand for optical fiber
Technology
Corning forecasts upbeat quarterly results on robust demand for optical fiber
(Reuters) - Gorilla Glass maker Corning's fourth-quarter profit forecast beat estimates on Tuesday, as rising consumption of data over networks, including for generative AI model training, continues to increase demand for its optical fiber products.
Shares of the company were up 5.7% in morning trading.
A shift in data consumption patterns, including cloud computing and the proliferation of video content, has led to an increasing need for fast data transfer via optical fiber cables. This demand is further driven by the use of data generated by consumers and enterprises to train AI models.
The New York-based company also said on Monday it struck a $1 billion multi-year deal with AT&T to supply fiber, cable, and connectivity solutions for expanding high-speed internet services.
Corning expects fourth-quarter revenue of $3.75 billion, which beat analysts' expectations of $3.67 billion, according to data compiled by LSEG.
On an adjusted basis, it forecasts earnings per share of between 53 cents and 57 cents, compared with Wall Street estimates of 52 cents.
The company reported revenue of $3.73 billion for the quarter ended Sept. 30, exceeding Wall Street estimates of $3.71 billion. It earned a profit of 54 cents per share, compared with analysts' expectations of a profit of 52 cents per share.
