"Strong Sales Forecast from Corning, But Decline in Fiber Optics"

Corning, the manufacturer of Gorilla Glass, forecasted on Tuesday that fourth-quarter sales would exceed analyst expectations; however, revenue from the company’s largest business unit producing fiber optic products fell short of expectations.

Following the announcement of the results, the shares of the Apple supplier dropped more than 7% in pre-market trading. However, the stock has risen about 88% so far this year.

The company's optical communications division reported net sales of $1.65 billion in the third quarter, accounting for nearly 40% of total revenue. This figure fell below the average analyst estimate of $1.73 billion.

Fiber optic companies in the United States, including Corning, OFS-Fellite, and Drake Communications, have been affected by slowing network investments in China. In September, Chinese officials imposed a 37.9% anti-dumping tariff on Corning’s optical fiber products and other cable suppliers.

This tariff move has heightened U.S.-China trade tensions, complicating operations for American technology and manufacturing companies facing demand challenges in China.

The results came as Corning deepened its partnership with Apple. In September, Apple announced that all glass coverings for iPhones and Apple Watches would now be produced using Corning's proprietary glass technology in Kentucky.

The company’s core sales increased by 14% in this quarter, reaching $4.27 billion. This figure represents a slight increase compared to the analyst forecast of $4.23 billion.

Corning expects fourth-quarter core sales to be approximately $4.35 billion, slightly higher than the average estimate of $4.26 billion.

The company also estimates its earnings per share for the quarter to be between 68 cents and 72 cents, which is above the projected figure of 67 cents.