April 28 (Reuters) – Corning forecast second-quarter revenue below Wall Street estimates on Tuesday, as weakness in the consumer electronics market continues to pressure business despite strong demand for data center products.
Shares of the Gorilla Glass maker fell more than 10% in premarket trading.
Slower replacement cycles for electronics and cautious consumer spending amid persistent economic uncertainty have pressured Corning’s business, offsetting gains in its optical communications segment.
For the second quarter ending June 30, the company expects core sales of about $4.6 billion, below analysts’ average estimate of $4.63 billion, according to data compiled by LSEG.
Corning, a key supplier to Apple, has been hurt by softer global smartphone demand, which has weighed on volumes for its specialty glass products, particularly in display technologies.
Net sales in the glass innovations segment, which includes display and specialty materials, rose 1% to $1.42 billion in the first quarter ended March 31.
Corning also continues to benefit from increased investment in data centers, which is boosting demand for its fiber‑optic products.
Its optical communications division, which includes fiber-optic cables, hardware and connectors, recorded net sales of $1.85 billion in the first quarter, beating estimates of $1.7 billion.
Corning also said it has signed long-term agreements with two hyperscalers. Like the $6 billion Meta deal it announced in January, the partnerships are aimed at meeting the connectivity demands of high-capacity data centers.
The company’s core sales in the first quarter stood at $4.35 billion, beating estimates of $4.26 billion. Adjusted profit came in at 70 cents per share, compared with estimates of 69 cents.
(Reporting by Kritika Lamba and Anhata Rooprai in Bengaluru; Editing by Diti Pujara)
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