Will Strong Top-Line Expansion Boost Corning's Q2 Earnings?

Corning Incorporated GLW is set to report its second-quarter 2025 results on July 29, before the opening bell. It delivered a trailing four-quarter earnings surprise of 3.95%, on average. In the last reported quarter, the company reported an earnings surprise of 8%.

The advanced glass substrates producer is likely to have witnessed revenue growth year over year, owing to healthy demand in the Optical Communications and Specialty Materials segments.

Factors at Play for GLW’s Q2 Earnings

During the quarter, Corning entered into a multi-year collaboration with Broadcom, a premier designer, developer and global supplier of a broad range of semiconductor devices. Through this partnership with Corning, Broadcom is aiming to deliver a next-generation co-packaged optics infrastructure designed to enhance the processing capabilities of data centers, marking a significant step toward addressing the growing demands of artificial intelligence workloads. Such strategic partnership is expected to have improved Corning’s prospects in the data center market.

In the quarter under review, Corning announced that one of the world’s leading smartphone manufacturer, Samsung has opted to deploy Gorilla Glass Ceramic 2 in its Galaxy S25 Edge devices. With crystals embedded within its glass matrix, Gorilla Glass Ceramic 2 set a new benchmark of durability and crack deflection capabilities. Such development is expected to have a favorable impact on the second quarter earnings.

Our revenue estimate for the Optical Communication segment is pegged at $1.47 billion, indicating healthy growth from $1.11 billion in the year-ago quarter. Our revenue estimate for Display Technologies segment is pegged at $919.6 million, indicating a 9.3% year-over-year decline. Revenue estimate for the Specialty Materials segment is pegged at $527 million, up 5.2% year over year.

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $3.85 billion, indicating growth from the year-ago quarter’s figure of $3.6 billion. The consensus estimate for adjusted earnings per share is pegged at 57 cents, implying an increase from the year-ago quarter’s 47 cents.

Earnings Whispers for GLW

Our proven model does not predict an earnings beat for Corning this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

GLW’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 57 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Corning Incorporated Price and EPS Surprise

Corning Incorporated price-eps-surprise | Corning Incorporated Quote

GLW’s Zacks Rank: Corning sports a Zacks Rank #1 at present.

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

PayPal Holdings, Inc. PYPL is scheduled to report quarterly numbers on July 29. The Earnings ESP for the company is +0.32% and it carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Qualcomm Technologies, Inc. QCOM is +0.60% and it carries a Zacks Rank of 3 at present. The company is scheduled to report its quarterly numbers on July 30.

Celestica, Inc. CLS is scheduled to report quarterly numbers on July 28. The Earnings ESP for the company is +0.81% and it carries a Zacks Rank of 2 at present.

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This article originally published on Zacks Investment Research (zacks.com).

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