Another bad news for AI hardware! Corning stock price “flash crashes”
[AI hardware is another bad news! Corning’s stock price “flash crashes”】The focus of market disappointment is mainly on the performance guidance. Corning expects third-quarter core sales to be between $4.9 billion and $5 billion. Wall Street had expected stronger guidance from the company.
Hello everyone, there is a leak in the house, but it rains all night, and AI hardware has another bad news. After the memory chip, Corning's stock price also collapsed. On the evening of July 28, Corning announced its second quarter results: core earnings per share were US$0.78, a year-on-year increase of 30%; core sales were US$4.74 billion, a year-on-year increase of 17%. After the financial report was released, Corning's stock price crashed before the market opened, plunging more than 16%. Market disappointment focused largely on guidance. Corning expects third-quarter core earnings per share to be in a range of $0.85 to $0.89 and core sales to be in a range of $4.9 billion to $5.0 billion. According to the data, analysts had expected Corning’s third-quarter sales to be $4.99 billion and earnings per share to be $0.85. Wall Street had expected stronger performance guidance from the company. Wall Street was already wary of Corning and other optical communications companies ahead of the earnings announcement, as the stocks have posted huge gains over the past 12 months. Corning's optical communications business became the main growth driver of second-quarter results. Net sales of this segment reached US$2.07 billion, a year-on-year increase of 32%. Among them, the enterprise network business increased by 65% year-on-year. The solar business’s second-quarter sales were US$438 million, a year-on-year increase of 90%, but the division still recorded a net loss of US$7 million. Corning said it expects the profitability of its solar business to improve in the third quarter as extended maintenance and equipment upgrades at its solar wafer fab are completed. On a GAAP basis, Corning's net sales in the second quarter were $4.51 billion and diluted earnings per share were $0.64. Corning Chairman and CEO Wendell Weeks said in a statement that the company is "entering a new phase of accelerated growth" and expects sales to grow at a compound annual growth rate of 19% from the fourth quarter of 2026 to the fourth quarter of 2030. Corning's "Springboard" growth plan proposes that the company's annual sales revenue will reach US$20 billion by the end of 2026; US$30 billion by the end of 2028; and US$40 billion by the end of 2030. During the quarter, Corning also announced partnership agreements with Amazon and Nvidia. Amazon signs a multi-year, multi-billion dollar deal with Corning. Under the agreement, Corning will supply optical fiber, optical cable and connectivity solutions to Amazon's data centers in the United States. Nvidia and Corning announced a long-term partnership. Corning will expand its optical connection product manufacturing capacity in the United States to 10 times its current level, and plans to increase its domestic optical fiber production capacity by more than 50%. Earlier this year, Corning reported first-quarter core sales of $4.35 billion and core earnings per share of $0.70, driven primarily by demand for fiber optic products related to the construction of artificial intelligence data centers. At that time, Corning also announced that it had reached cooperation with two ultra-large-scale cloud computing manufacturers. The transaction size was equivalent to the multi-year agreement it had signed with Meta, and announced arrangements to extend the "Springboard" growth plan to 2030.