Corning ( NYSE: GLW ) stock slid as much as 8.2% on Tuesday after the materials firm's Q4 guidance missed expectations , hurt by significantly lower volume in display technologies and constrained automotive production.
The company expects Q4 core EPS of $0.41-$0.47 vs. consensus estimate of $0.55.
Q4 core sales are projected to be $3.45B-$3.65B vs. consensus estimate of $3.74B.
CEO Wendell Weeks noted that in Q3, "display panel maker utilization reached its lowest level since 2008; and smartphone, tablet, and notebook retail unit sales declined significantly".
"Although we believe panel maker utilization reached the bottom in Sept., we would like to see more evidence before we guide a significant recovery in glass demand. When glass demand does increase, we expect our volume to return and profitability to improve," said CFO Ed Schlesinger.
"We also expect optical communications' sales to be down sequentially due to customer project timing," he added.
Q3 results were largely in line with estimates, helped by 16% Y/Y growth in optical communications and 33% growth in Hemlock and emerging growth businesses, reflecting ongoing demand in the solar market.
Corning ( GLW ) also shed light on market dynamics during Q3:
Shares of Corning ( GLW ) fell 16.2% YTD.
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Corning stock slides 8% as guidance disappoints amid weak display tech volume