Corning beat expectations with fourth-quarter revenue reaching $4.4 billion and adjusted earnings per share hitting 72 cents. The stock dropped over 4% following a monster rally from Meta Platforms’ data center order. Corning’s operating margin slightly missed expectations at 20.2%, but still showed strong year-over-year growth. The company is a key supplier to Apple and specializes in fiber optic cables, positioning it well for future growth in the data center market.

Corning CEO Wendell Weeks announced the company is finalizing additional long-term agreements similar to the one with Meta Platforms, signaling strong growth prospects. The agreements aim to share risk between Corning and its customers, providing revenue assurance and demand commitments. Corning is focused on innovation, aiming to replace copper networking with more efficient fiber optic solutions. With a price target raised to $125 per share, Corning is considered a major player in the data center market with significant growth potential.

Management forecasts a 15% year-over-year core sales growth rate for the current quarter, with revenue guidance between $4.2 to $4.3 billion. The company’s Springboard plan aims to drive revenue higher, targeting $6.5 billion in incremental sales by year-end and $11 billion by the end of 2028. Corning’s strong performance and strategic partnerships position it well for continued growth, making it an attractive investment opportunity.

Read more at CNBC: Corning’s Meta deal and earnings tell us this stock is nowhere near done going up