What is optical networking?
Optical networking is a way of moving data over networks using light, usually pulses sent through glass fiber cables. It is the basis of many long-distance and high-capacity links in telecommunications and data centers. Companies that make the fiber, cables, and equipment for these networks are often called optical networking companies.
Why it's in the news
Corning reports third-quarter earnings before the market opens Tuesday. Investors are watching the results for signs of how demand for AI-related networking is affecting the company.
- GLW Stock — Corning reports third-quarter earnings before the bell Tuesday
Background
Optical networking refers to communication networks that carry information as light. Signals travel through thin strands of glass or plastic called optical fiber. Equipment at each end converts electrical data into light and back again. Because light can carry large amounts of data over long distances, these networks form a core part of internet, telephone, and data center traffic.
Corning (NYSE: GLW) is a glass and electronic components maker. Its earnings are closely watched by investors who follow optical networking stocks. The company is scheduled to report third-quarter results before the market opens on Tuesday. In its previous quarter, Corning reported revenue of $4.74 billion, up 17.1% from a year earlier. Analysts expect third-quarter revenue to rise about 18.1% from a year ago. Its profit guidance for the next quarter came in above analyst forecasts, while its revenue guidance fell short.
Corning's shares were trading at $123.29 at the time of the preview, down 18.7% over the prior month. The average analyst price target was $187.41. Two headlines from other outlets, WSJ and Barron's, suggested that Corning's profit surged on AI demand and that its earnings might be what optical networking stocks need. The details behind those headlines are not available here.
What people are asking
What is optical networking?
Optical networking is a method of sending data as light through fiber optic cables. It supports long-distance and high-capacity communication links used by telecom providers and data centers.
Who is Corning?
Corning is a glass and electronic components maker listed on the New York Stock Exchange under the ticker GLW.
When does Corning report earnings?
Corning is set to report third-quarter earnings before the market opens on Tuesday.
How much revenue did Corning report last quarter?
Corning reported revenue of $4.74 billion in its previous quarter, up 17.1% from a year earlier.