Corning Earnings: Shares Still Attractive After Display Improves and Optical Takes a Step Back in Q2

We trim our fair value estimate for narrow-moat Corning shares to $39, from $40, following second-quarter results that lead us to temper our near-term growth assumptions for its optical fiber sales. Overall, second-quarter results and third-quarter guidance missed our expectations, and we now expect more drawn-out recoveries for markets like optical. Still, we expect improvement through 2023 and into 2024. Corning's display market appears to have rebounded from its bottom, and we believe the firm's actions on pricing will drive up profits faster than sales. We continue to see upside in Corning shares, and believe long-term investors have a good entry point for a fundamentally strong firm.