Corning reported second-quarter earnings of $0.78 per share, causing shares to drop 12% to 14% on Tuesday.
Corning shares fell between 12% and 14% on Tuesday following the release of second-quarter earnings. The company reported core earnings of $0.78 per share, which exceeded analyst estimates of $76 cents. Core sales reached $4.74 billion, also beating Wall Street's expectations of $4.61 billion. Despite these positive results, the stock price dropped because the administration announced revenue forecasts for the current quarter fell below the consensus of $5 billion. The company expects core revenue to grow 16%, targeting a range of $4.9 billion to $5 billion. Corning's networking solutions and fiber optic cables are becoming a vital part of the artificial intelligence data center buildout. The company recently secured a multi-year deal with Amazon to power and connect its expanding fleet of data centers. Analysts maintain a other upside for the stock, noting that the Optical Communications segment should continue to benefit from the growing demand for computing power.