Corning Incorporated (NYSE:GLW) shares are trading higher on Thursday. The company provided significant updates to its “Springboard” plan of adding more than $3 billion in annualized sales and shared its strategy to achieve a 20% operating margin by the end of 2026.

For the third quarter of 2024, the company continues to expect sales of $3.7 billion (vs. consensus of $3.71 billion) and EPS in the range of $0.50 – $0.54 (vs. consensus of $0.53).

Wendell P. Weeks, chairman and chief executive officer, said, “I’m very pleased with the progress we have made on our ‘Springboard’ plan to add more than $3 billion in annualized sales by 2026. The plan leads to an improving return profile, with profits growing significantly faster than sales.”

Corning is implementing price increases in its display technologies and forecasts, delivering segment net income of $900 million to $950 million in 2025 while maintaining a net income margin of 25%.

Corning’s Optical Communications division is showing positive momentum, with Enterprise sales projected to increase by over 40% Y/Y in the third quarter, driven by strong adoption of its generative AI products.

The company is unveiling a new range of products designed to interconnect AI-enabled data centers.

This launch supports Lumen Technologies Inc.’s (NYSE:LUMN) network expansion and represents the first deployment of Corning’s next-generation AI fiber-and-cable system in outside plant environments.

In July, Corning reported a fiscal second-quarter 2024 core sales growth of 4% year-on-year to $3.60 billion, beating the analyst consensus estimate of $3.55 billion. 

Investors can gain exposure to the stock via ProShares Smart Materials ETF (NYSE:TINT) and Professionally Managed Portfolios Otter Creek Focus Strategy ETF (NYSE:OCFS).

Price Action: GLW shares are up 2.49% at $44.50 at the last check Thursday.

Photo via Shutterstock

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