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GlobalFoundries Shares (NASDAQ:GFS) fell 1.5% — albeit in a substantially lower tech sector Tuesday — after an earnings report that contained light revenue guidance for the current quarter.
Profits beat expectations after revenue fell about 12%, in line with forecasts.
But the company’s forecast for first-quarter revenue came in at $1.5-1.54 billion, significantly lower than Street estimates of a 3.7% decline to $1.77 billion, indicating signs of continued industry-wide semiconductor glut.
It also expected operating profit of $60 million-$130 million (reflecting a 6.3% operating margin at the midpoint) and net profit of $40 million-$106 million (4.8% net income margin ).
This led to an adjusted earnings per share forecast of $0.18 to $0.28, well below expectations for $0.48.
“In the fourth quarter, GF’s dedicated teams around the world delivered financial results that exceeded the midpoint of the guidance ranges provided in the November earnings release,” CEO Dr. Thomas Caulfield said in reaction.
“We continue to position GF to drive foundry innovation and differentiation in essential end markets and are particularly proud of our revenue growth in the automotive end market, with more than $1 billion in revenue in 2023,” he added.