Corning Gains on Forecasts for Telecom, Gorilla Glass GrowthSarah Frier
Corning Inc., the maker of glass for flat-panel televisions, phones and tablets, rose the most in almost five months after forecasting growth for its telecommunications and Gorilla Glass products.
Corning climbed 5.5 percent to $13.85 at the close in New York, the biggest one-day increase since Nov. 27. The shares have risen 9.7 percent this year, trailing the 11 percent rise in the Standard & Poor’s 500 Index.
Corning is benefiting from surging global sales of smartphones and tablets. The Corning, New York-based company expects its Gorilla Glass, supplied to electronics makers from Samsung Electronics Co. to Sony Corp., to double as a business over the next few years, Chief Financial Officer Jim Flaws told investors in February.
“Corning’s global glass substrate share has been recovering since the decline” early last year, said Andrew Uerkwitz, an analyst with Oppenheimer & Co. in New York, in a note to investors. “We think the worst is behind the company.”
Revenue in Corning’s specialty materials division will climb 15 percent to 20 percent in the second quarter from the previous three-month period on rising demand for Gorilla Glass, the company said today. Sales of optical fiber and other products for communications networks will climb 20 percent in that span, Corning said today in a statement.
First-quarter net income rose to $494 million, or 33 cents a share, from $474 million, or 31 cents, in the year-earlier period. Analysts predicted 23 cents, according to the average of 12 estimates compiled by Bloomberg. Revenue shrank 5.5 percent to $1.81 billion, compared with the $1.96 billion estimate.