Corning Incorporated (NYSE:GLW) shares are trading higher Tuesday after the company announced a $6 billion agreement with Meta Platforms (NASDAQ:META) to accelerate U.S. data center infrastructure for AI.
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Corning, Meta Announce Multiyear Data Center Agreement
Under the agreement, Corning will supply Meta with its latest optical fiber, cable and connectivity solutions designed to meet the density and scale requirements of advanced AI data centers. The partnership is intended to support Meta’s applications, technologies and AI initiatives.
To support the agreement, Corning said it will expand manufacturing capabilities across its North Carolina operations, including a significant capacity expansion at its optical cable manufacturing facility in Hickory, North Carolina, where Meta will serve as the anchor customer. Corning also plans to add a new optical cable manufacturing facility in Hickory.
The company said the agreement is expected to support employment growth in North Carolina of approximately 15% to 20%, sustaining a skilled workforce of more than 5,000 employees across the state. The workforce includes scientists, engineers and production teams at Corning’s optical fiber and cable manufacturing facilities.
“This long-term partnership with Meta reflects Corning’s commitment to develop, innovate, and manufacture the critical technologies that power next-generation data centers here in the U.S.,” said Corning chairman and CEO Wendell Weeks.
Meta said the collaboration supports its efforts to build advanced data centers in the U.S. using domestically manufactured technology and infrastructure.
Earnings Around The Corner
Corning is scheduled to report fourth-quarter earnings on Wednesday before the market open. Analysts estimate earnings per share of 70 cents alongside revenue of $4.35 billion.
The company has beat estimates in six consecutive quarters, according to Benzinga Pro. In the most recent quarter, Corning reported EPS of 67 cents against an estimate of 66 cents, with revenue of $4.23 billion, slightly above the $4.20 billion estimate.
“We expect continued strong growth in the fourth quarter, driven by ongoing robust demand for our Gen AI products and sales of solar wafers. We’re guiding to core sales of approximately $4.35 billion, with core EPS growing faster than sales to a range of $0.68 to $0.72. Additionally, we are on track to achieve our Springboard operating margin target of 20% in the fourth quarter, a year ahead of plan,” said executive vice president and CFO Ed Schlesinger.
“This represents a 370-basis-point improvement from our Q4-2023 starting point – and establishes a strong return profile as we continue to grow sales.”
GLW Price Action: At the time of writing, Corning shares are trading 18.99% higher at $112.99, according to data from Benzinga Pro.
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