Corning's Fourth-Quarter Profit Forecast Surpasses Expectations

(Reuters) – Gorilla Glass maker Corning (NYSE:GLW) reported on Tuesday that its fourth-quarter profit forecast exceeded estimates, fueled by the rising consumption of data over networks, including for generative AI model training, which has continued to increase demand for its optical fiber products.

Shares of the company surged 5.7% in morning trading.

A notable shift in data consumption patterns, such as cloud computing and the explosion of video content, has created an increasing necessity for fast data transfer via optical fiber cables. This trend is further accelerated by the use of data generated by consumers and enterprises to train AI models.

Additionally, Corning announced a $1 billion multi-year deal with AT&T (NYSE:T) to supply fiber, cable, and connectivity solutions aimed at expanding high-speed internet services.

Corning anticipates fourth-quarter revenue of $3.75 billion, surpassing analysts' expectations of $3.67 billion, according to data compiled by LSEG.

On an adjusted basis, the company forecasts earnings per share between 53 cents and 57 cents, exceeding Wall Street estimates of 52 cents.

In the quarter ending September 30, Corning reported revenue of $3.73 billion, exceeding Wall Street estimates of $3.71 billion. The company earned a profit of 54 cents per share, compared to analysts' expectations of 52 cents per share.