GlobalFoundries stock was rising early Tuesday after the contract chip manufacturer beat expectations for its third-quarter earnings.
GlobalFoundries
(ticker: GFS) produces components for a range of semiconductor companies and said it continues to deal with excess inventory in some markets but its guidance indicated a market improvement.
The company reported adjusted earnings of 55 cents a share for the third quarter, down from 67 cents for the same period a year earlier. Net revenue fell 11% to $1.85 billion.
GlobalFoundries was expected to report adjusted earnings of 50 cents a share on revenue of $1.85 billion, according to a FactSet poll of analysts’ estimates.
GlobalFoundries shares were up 2.4% in premarket trading.
“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,” CEO Thomas Caulfield said in a statement.
GlobalFoundries said it expects adjusted earnings of between 53 cents and 64 cents for the fourth quarter on revenue in a range of $1.83 billion to $1.88 billion. Analysts had expected earnings of 53 cents and revenue of $1.89 billion, according to FactSet.
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