GlobalFoundries beats by $0.06, reports revs in-line
-4.88%
Reports Q3 (Sep) earnings of $0.44 per share, excluding non-recurring items, $0.06 better than the FactSet Consensus of $0.38; revenues fell 2.9% year/year to $1.69 bln vs the $1.68 bln FactSet Consensus.Non-IFRS gross margin of 26.0%."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. Gross margin expanded sequentially and year over year in the third quarter, as we continue to drive the product mix and profitability of our business. We are also encouraged by the momentum we are seeing with customers across key growth applications, such as our silicon photonics and FDX platforms."
GlobalFoundries Dips Despite Solid Q3 as Investors Wait on AI Photonics, Reshoring Payoff
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GlobalFoundries (GFS), a specialty semiconductor foundry focused on differentiated process technologies like RF, power, and silicon photonics, is trading lower today after reporting Q3 results this morning. The company beat EPS expectations, while revenue declined 3% yr/yr to $1.69 bln, in line with estimates. For Q4, GFS guided revenue to $1.775-1.825 bln (midpoint above estimates) and EPS of $0.42-0.52, roughly in line.
Automotive rose 20% yr/yr and now makes up about 18% of sales, driven by rising chip content in EVs and smart vehicles, with management expecting roughly $1.5 bln in annual revenue this year.Communications, Infrastructure and Datacenter climbed 32% yr/yr on strength in optical networking and SATCOM, including three new design wins worth $150 mln.Smart Mobile Devices, about 45% of total revenue, was softer, down 13% yr/yr on pricing and shipment timing, though it did increase 10% sequentially.Management said hyperscalers are shifting to pluggable and co-packaged optics to meet AI data needs, with GF expecting its optical networking market to grow about 40% annually through 2030 and silicon photonics revenue to double this year toward a $1 bln run rate later in the decade.GFS also stands to benefit from reshoring tailwinds as customers seek non-China, non-Taiwan manufacturing, expanding fab investments across the U.S. and Germany with support from customers like Apple (AAPL), AMD (AMD), SpaceX, Qualcomm (QCOM), and NXP Semi (NXPI).Briefing.com Analyst Insight
GlobalFoundries delivered a solid Q3 anchored by strength in Automotive and Datacenter, though Smart Devices, its largest segment by revenue, remains sluggish. While not a direct AI foundry powerplay like TSMC (TSM) or Broadcom (AVGO), management sounded confident about AI-driven optical interconnect and photonics demand, a growing TAM, and continued onshoring momentum. That said, this remains an execution story: Q4 revenue guidance still implies a yr/yr revenue decline, and the faster-growing segments accounted for about 28% of total sales in Q3. For now, the structural tailwinds are clear, but investors appear to be waiting for them to translate into more tangible top-line growth.
GlobalFoundries expects upbeat quarter on demand for auto, data center chips
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+7.27%
Nov 12 (Reuters) - Contract chipmaker GlobalFoundries GFS.O forecast fourth-quarter profit and revenue above Wall Street estimates on Wednesday, driven by strong demand from its clients in the automotive and data center markets.
Shares of the Malta, New York-based GlobalFoundries rose around 6% in premarket trading, after also topping expectations for third-quarter profit.
The company has seen higher demand for its made-to-order chips, as automakers focus on electric vehicles and advanced driver-assistance systems and as tech companies look to upgrade data center capacity to run their artificial intelligence models.
Automotive clients account for about 16% of the company's annual revenue on average, while communications, infrastructure and data center customers account for about 10.5%. Its biggest segment is smartphones, representing over 40% of revenue.
For the fourth quarter, GlobalFoundries expects adjusted earnings of 47 cents per share, plus or minus 5 cents, compared with analysts' estimate of 46 cents per share, according to data compiled by LSEG.
It expects revenue of $1.80 billion, plus or minus 25 million, a touch above estimates of $1.79 billion.
One of the few large foundries with significant capacity outside China and Taiwan, GlobalFoundries makes chips for companies including Advanced Micro Devices AMD.O, Qualcomm QCOM.O, and NXP Semiconductors NXPI.O. It runs chip plants in Germany, Singapore, New York, and Vermont.
In recent weeks, the company has signed a technology licensing deal with larger peer TSMC 2330.TW, and announced a 1.1 billion euros expansion of its facility in Germany, backed partly by the German government.
For the quarter ended September 30, GlobalFoundries reported earnings of 41 cents per share, topping estimates of 37 cents. Quarterly revenue of $1.69 billion edged past estimates of $1.68 billion.
Its shares have fallen nearly 19% this year, as of last close.
(Reporting by Arnav Mishra in Bengaluru; Editing by Sahal Muhammed)
((Arnav.Mishra@thomsonreuters.com;)) |
