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GlobalFoundries Reports Record Sales and Forecasts Even More Amid Semiconductor Shortages

GlobalFoundries Inc. reported record quarterly sales and expects more results Tuesday as the chipmaker continues to benefit from a semiconductor shortage.

Global Foundries GFS,
+0.86%
reported net income of $178 million, or 33 cents a share, on sales of $1.94 billion in the first quarter, compared to $1.42 billion in the same quarter last year. Adjusted earnings, which exclude stock-based compensation expense and other items, were 42 cents per share, compared to an adjusted loss of 25 cents per share in the year-ago period.

Analysts polled by FactSet had forecast earnings of 24 cents a share on sales of $1.9 billion, based on GlobalFoundries’ most recent quarter forecast of 21 to 27 cents a share on sales of 1.88 to $1.92 billion.

Shares gained 3.5% in after-hours trading following the earnings release after gaining 0.9% in the regular session to close at $52.73. Shares closed 12.2% higher than their IPO price of $47 from the company’s October IPO.

Learn more: Five things you should know about GlobalFoundries

The Malta, NY-based company – known for operating fabrication facilities, or “fabs” in technical jargon – manufactures silicon wafers for the majority of chipmakers that do not have their own fabs. Since the COVID-19 pandemic, customer waitlists at third-party providers like GlobalFoundries have been behind for several months due to global chip shortages.

GlobalFoundries is forecasting second-quarter adjusted earnings of 43 to 48 cents a share on sales of $1.96 to $1.99 billion. On average, analysts were forecasting earnings of 27 cents per share on sales of $1.93 billion for the second quarter, according to FactSet.

https://www.marketwatch.com/story/globalfoundries-reports-record-sales-and-predicts-more-to-come-amid-semiconductor-shortage-11652213866?rss=1&siteid=rss GlobalFoundries Reports Record Sales and Forecasts Even More Amid Semiconductor Shortages

Brian Lowry

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