Updated from 8:56 a.m. EDT
announced Monday that its second-quarter earnings will exceed Wall Street's expectations.
Shares of Corning were up 14 3/16, or 7%, to 226 3/16 after reaching a 52-week high of 231. (Corning closed up 18, or 8%, at 230.)
The company, based in Corning, N.Y., expects to report earnings per share for the second quarter to come in between 78 and 80 cents, or up 50% from the same period last year. Analysts' expectations were for earnings per share of around 69 cents, according to
First Call/Thomson Financial
Corning also announced that earnings-per-share growth for the year will likely be closer to 45%, rather than the 35% it had previously predicted.
Charles Willhoit, an analyst who covers Corning for
, revised his year-end estimates upward following the announcement. He now expects gross margins of 39% instead of 38.5%, and gross sales of $6.9 billion compared to the $6.7 billion he had expected. Demand for the fiber the company produces for fiber optic cables was much higher than expected, Willhoit said. He has a buy rating on the stock, and JP Morgan has served as an underwriter for Corning.
"I continue to be a strong bull on this stock," he said, noting that at current levels the company trades at about 65 times expected 2000 earnings, not a large premium considering its earnings-per-share growth will be close to 45%.