Why Are GlobalFoundries Shares Trading Higher Today?

GlobalFoundries Inc GFS reported a third-quarter FY23 revenue decline of 11% year-on-year to $1.852 billion, beating the consensus of $1.849 billion.

The semiconductor manufacturer's adjusted EPS of $0.55 beat the consensus of $0.49

The adjusted gross margin declined by 70 bps to 29.2%, and the adjusted operating margin fell by 140 bps to 17.4%.

The adjusted EBITDA margin declined by 220 Y/Y to 36.0%. 

GFS generated $416 million in operating cash flow and held $3.4 billion in cash and equivalents.

Thomas Caulfield, president and CEO, said, "Although the global economic and geopolitical landscape remains uncertain, we are collaborating closely with our customers to support their efforts to reduce inventory levels while growing long-term partnerships to drive foundry innovation and differentiation across essential end-markets."

Outlook: GFS sees Q4 revenue of $1.825 billion-$1.875 billion versus the $1.89 billion estimate. The company expects adjusted EPS of $0.53-$0.64 versus the $0.52 estimate.

Price Action: GFS shares traded higher by 5.35% at $54.42 on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!