GlobalFoundries shares rise as Q3 earnings top estimates

Investing.com -- GlobalFoundries Inc. (NASDAQ: GFS) shares rose 3.6% premarket after the semiconductor manufacturer reported third-quarter earnings that exceeded analyst expectations, with strong performance in its automotive and communications infrastructure segments.

The Malta, New York-based chipmaker posted adjusted earnings per share of $0.41 for the third quarter, beating the analyst consensus of $0.38. Revenue came in at $1.69 billion, slightly above the consensus estimate of $1.68 billion but down 3% YoY from $1.74 billion in the same quarter last year.

The company’s stock gained 3.6% following the results, as investors responded positively to the earnings beat and solid guidance for the fourth quarter.

"GF delivered a strong third quarter, with revenue, gross margin, operating margin, and earnings per share at the high end of the guidance ranges," said Tim Breen, CEO of GlobalFoundries. "For the fourth consecutive quarter, we saw strong year-over-year revenue growth in both our Automotive and Communications Infrastructure and Data Center end markets."

The company reported non-IFRS gross margin of 26.0%, an improvement of 130 basis points YoY and 80 basis points sequentially. Wafer shipments increased 10% YoY to 602,000 (300mm equivalent).

For the fourth quarter, GlobalFoundries expects revenue between $1.775 billion and $1.825 billion, in line with the consensus of $1.79 billion. The company forecasts adjusted earnings per share of $0.42 to $0.52, compared to analyst expectations of $0.47.

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