GLW Set to Report Q1 Results: Will Top-Line Growth Boost Earnings?

Corning Incorporated GLW is set to report first-quarter 2025 results on April 29, before the opening bell. It delivered a trailing four-quarter earnings surprise of 3.34%, on average. In the last reported quarter, the company reported an earnings surprise of 1.79%. The New York-based advanced glass substrates producer is likely to have witnessed revenue growth year over year, owing to healthy demand in several segments. Strong focus on product innovation and healthy AI traction are tailwinds.

Factors at Play

In the to-be-reported quarter, Samsung Electronics, the world's second-largest manufacturer of smartphones, opted to deploy Corning’s Gorilla Armor 2, the industry’s first scratch-resistant, anti-reflective glass ceramic cover material for its Galaxy S25 Ultra devices. The product’s anti-reflective properties reduce surface reflections in both indoor and outdoor ambient settings, enhancing the display contrast ratio and delivering an exceptional user experience in various lighting conditions. This initiative underscores the enduring collaboration between Samsung and Corning and the two companies’ shared commitment to innovation and customer satisfaction. 

During the quarter, Corning launched GlassWorks AI solutions, a comprehensive product suite tailored to support fiber densification with network planning, designing and deployment in AI-native data centers. The cable’s compact and innovative design allows for the fitting of double fiber into existing cable diameters. This enables the expansion of data center capacity without substantial infrastructure changes, ensuring cost efficiency. 

In the March quarter, the company also extended its portfolio of durable cover materials with the launch of Corning Gorilla Glass Ceramic, bringing an advanced protective layer for the safety of mobile devices. This innovative transparent material significantly improves drop performance on rough surfaces compared to competitive aluminosilicate glasses, surviving 10 repeated drops from one meter on surfaces replicating asphalt in lab testing. The introduction of such innovative products are likely to have generated incremental revenues in the upcoming quarter and propel the stock.

Overall Expectations

Corning’s comprehensive portfolio of data center solutions, which includes optical fiber, hardware, cables and connectors, has been gaining popularity. The growing adoption of innovative optical connectivity products for generative AI applications is a key growth driver in the Optical Communication segment. Our revenue estimate for this segment is pegged at $1.21 billion, indicating healthy growth from $930 million in the year-ago quarter.

Our revenue estimate for the Display Technologies segment is pegged at $942.2 million, indicating 8.1% year-over-year growth. Healthy traction in the premium smartphone market is a tailwind for the Specialty Materials segment. Our revenue estimate for this segment is pegged at $492.2 million, up 8.4% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

For the March Quarter, the Zacks Consensus Estimate for the company’s total revenues is pegged at $3.45 billion, indicating an improvement from $3.26 billion reported in the prior-year quarter. Adjusted earnings per share is pegged at 50 cents, an improvement from 38 cents reported in the prior-year quarter.

Earnings Whispers

Our proven model does not conclusively 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.

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 50 cents per share. 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

Zacks Rank: Corning has a Zacks Rank #3.

Stocks to Consider

Qorvo QRVO is set to release quarterly numbers on April 29. It has an Earnings ESP of +3.42% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

QUALCOMM Incorporated QCOM is set to release quarterly numbers on April 29. It has an Earnings ESP of +0.86% and carries a Zacks Rank #2.

CGI Group GIB is set to release quarterly numbers on April 30. It has an Earnings ESP of +0.89% and carries a Zacks Rank #2.

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

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