Corning’s profit and revenue topped analysts’ estimates in the third quarter, driven by strong demand for its Gorilla Glass smartphone screens and its fiber optic cables.
The company’s shares (GLW) rose 3.5% to $31.05 in premarket trading on Tuesday.
Earnings from Corning’s specialty materials unit, which makes Gorilla Glass, surged 71.4% to $71 million in the third quarter, driven by demand from smartphone makers such as Apple (AAPL).
Profit from Corning’s optical communications business, which makes fiber optic cables and connectors, climbed 21.4% to $102 million.
Corning’s optical communications business has benefited as telecom companies improve their network infrastructure for better coverage and to speed up new 5G technology deployments. In April, Verizon (VZ) agreed to buy optical fiber from Corning over the next three years in a $1.05 billion deal.
Net income attributable to Corning rose to $390 million, or 39 cents per share in the third quarter, from $284 million, or 26 cents per share, a year earlier.
The Corning, New York-based company reported core earnings of 43 cents per share, beating the average analyst estimate of 41 cents, according to Thomson Reuters.
Adjusted revenue rose to $2.7 billion, beating analysts’ estimates of $2.6 billion.