Oct 28 (Reuters) - Gorilla Glass maker Corning
on Tuesday forecast fourth-quarter sales above analysts'
estimates, but revenue from its largest business unit that makes
fiber optic products fell short of expectations.
Shares of the Apple ( AAPL ) supplier fell more than 7% in
premarket trading after the results, though the stock is still
up about 88% so far this year.
The company's optical communications division, which
accounts for nearly 40% of total revenue, recorded net sales of
$1.65 billion for the third quarter, below analysts' average
estimate of $1.73 billion, according to LSEG data.
U.S. optical fiber companies Corning, OFS-Felite and Drake
Communications have been pressured by slower network investment
in China, where authorities in September imposed a 37.9%
anti-dumping tariff on imports of Corning's optical fiber
products and other cable providers.
The tariff move added to U.S.-China trade tensions, further
complicating operations for American technology and
manufacturing companies exposed to Chinese demand.
The results come even as Corning deepens its partnership
with Apple ( AAPL ), which in September said all cover glass for iPhones
and Apple Watches will now be made in Kentucky using Corning's
proprietary glass technology.
Its core sales in the quarter rose 14% to $4.27 billion,
compared with estimates of $4.23 billion, according to data
compiled by LSEG.
Corning said it expects fourth-quarter core sales to be
around $4.35 billion, compared with the average estimate of
$4.26 billion.
The company forecast quarterly core earnings per share
between 68 cents and 72 cents, compared with estimates of 67
cents.
(Reporting by Kritika Lamba in Bengaluru; Editing by Saumyadeb
Chakrabarty)