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GlobalFoundries stock leaps 7% on strong outlook, Q3 results

EditorRachael Rajan
Published 2024-11-05, 07:14 a/m
© Reuters.
GFS
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MALTA, N.Y. - GlobalFoundries Inc. (NASDAQ: NASDAQ:GFS) reported better-than-expected third quarter results and provided an upbeat outlook, sending its shares soaring 7% in premarket trading Tuesday.

The semiconductor manufacturer posted adjusted earnings per share of $0.41, surpassing analyst estimates of $0.33. Revenue came in at $1.74 billion, slightly above the consensus forecast of $1.73 billion and down 6% YoY.

GlobalFoundries' strong performance was driven by consistent execution and key design wins across its portfolio of chip technologies. The company secured a new collaboration with NXP Semiconductors (NASDAQ:NXPI) leveraging its 22FDX process technology platform.

"We delivered consistent financial results at the upper end of the guidance ranges we provided in our August earnings release," said CEO Dr. Thomas Caulfield. He added that the company remains on track to deliver approximately a threefold increase in YoY adjusted free cash flow generation by the end of 2024.

Looking ahead, GlobalFoundries provided an optimistic fourth quarter outlook. The company expects revenue between $1.8 billion and $1.85 billion, compared to analyst estimates of $1.804 billion. Adjusted earnings per share are projected to be $0.29-$0.43, versus the $0.38 consensus.

The strong results and guidance highlight GlobalFoundries' resilience amid ongoing industry uncertainties. With $4.3 billion in cash and marketable securities, the company appears well-positioned to navigate near-term challenges while investing in future growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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