Corning (GLW) Up 7.4% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Corning (GLW). Shares have added about 7.4% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Corning due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Corning's Q2 Earnings Beat on Solid Growth in Optical CommunicationCorning Incorporated reported impressive second-quarter 2025 results, wherein adjusted earnings and revenues surpassed the respective Zacks Consensus Estimate. The advanced glass substrates producer witnessed revenue expansion year over year, driven by healthy sales across multiple end markets. The growing adoption of its advanced products for Gen-AI (generative artificial intelligence) applications is a tailwind. Its U.S.-made solar products are also gaining solid market traction.Net Income of GLWOn a GAAP basis, the company reported a net income of $469 million or 54 cents per share compared with $104 million or 12 cents in the year-ago quarter. Solid top-line growth led to higher net income.Core earnings for the reported quarter were $523 million or 60 cents per share, up from $407 million or 47 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.GLW’s RevenuesNet sales, on a GAAP basis, were $3.86 billion, up from $3.25 billion reported in the year-ago quarter. Solid traction in mobile consumer electronics, premium smartphone verticals and Optical Communications boosted net sales. Core sales were up 12% to $4.04 billion. The top line beat the consensus estimate of $3.85 billion.GLW’s Segment ResultsOptical Communications generated $1.56 billion in revenues, up 41% year over year. Backed by strong demand for Gen AI products, Optical Communication’s Enterprise Sales grew 81% year over year. The top line beat our estimate of $1.47 billion. Net income from this segment improved to $247 million from $143 million reported in the year-ago quarter.Display Technologies registered $898 million in revenues, down 11% year over year. Net sales missed our revenue estimate of $919.6 million. The segment’s net income was $243 million, down 6% year over year.Net sales from Specialty Materials were $545 million, up 9% year over year, as demand for premium glass for mobile devices remained strong. The top line exceeded our estimate of $527 million. Net income for the segment was $81 million, up from $63 million a year ago.The Automotive business contributed $460 million in net sales, down from $479 million in the year-ago quarter. The segment is created by separating the Automotive Glass Solutions business from Hemlock and the Emerging Growth Business and converging it with the Environmental Technologies segment. Net income was $79 million, up 11% year over year.Revenues from the Life Sciences segment were $250 million compared with the year-earlier quarter’s figure of $249 million. Segment net income was $18 million, up 6% year over year.Hemlock and Emerging Growth Businesses reported 31% growth in net sales year over year to $326 million. The segment reported a net loss of $10 million against a net income of $3 million in the year-ago quarter.Other Details of GLW Q2 ResultsQuarterly gross profit increased to $1.39 billion from $949 million, with respective margins of 36% and 29.2%. Operating income was $573 million, up from $186 million in the prior-year quarter. Core gross margin was 38.4%, up from 37.9% in the year-ago quarter, owing to various productivity and pricing improvement actions across business operations.GLW’s Cash Flow & LiquidityDuring the June quarter, Corning generated $708 million of net cash from operations compared with a cash flow of $521 million in the year-earlier quarter. As of June 30, 2025, the company had $1.49 billion in cash and cash equivalents with $6.71 billion of long-term debt.GLW’s OutlookFor the third quarter of 2025, core sales are estimated at $4.2 billion. Core EPS is expected to be in the range of 63-67 cents.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresAt this time, Corning has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Corning has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks