Corning NYSE:GLW fell 13.91% intraday after reporting second-quarter core sales up 17% to $4.74 billion and core earnings per share up 30% to $0.78. Both above the Wall Street expectation of $0.76 and $4.63 billion. Core gross margin expanded 120 basis points to 39.6%, core operating margin 190 basis points to 20.9%, and adjusted free cash flow reached $1.42 billion.
Optical Communications sales rose 32% to $2.07 billion with net income up 77%, and Enterprise Networks grew 65%. Glass Innovations sales rose 1%, Automotive 2%, and Life Sciences and Emerging Growth fell 15% to $294 million with a $21 million net loss. Solar sales grew 90% but the segment lost $7 million following an extended maintenance shutdown at its wafer facility.
Management guided third-quarter core sales to $4.9 billion to $5 billion and core EPS to $0.85 to $0.89. The sales range fell slightly short of Wall Street expectations. CFO Ed Schlesinger said Corning delivered "our ninth consecutive quarter of year-over-year growth." The company held its Springboard targets of a $20 billion annualized sales run rate by the end of 2026 and $40 billion by 2030.