Globalfoundries Inc (NASDAQ:GFS) has reported third-quarter earnings that beat expectations and provided upbeat guidance for the final quarter of 2023, sending its shares higher on Tuesday morning.
The chip maker posted an 11% decline in revenue for the quarter ended September 30, 2023, to $1.85 billion, in line with analysts’ consensus estimates.
Diluted adjusted earnings per share (EPS) fell 18% to $0.55, above the $0.50 estimate of analysts polled by FactSet.
On a sequential basis, both revenue and earnings were higher.
GF highlighted a recently-awarded US Department of Defense contract to supply of securely manufactured, US-made semiconductors for use across a wide range of critical aerospace and defense applications.
Also, it said its most advanced RF technology, 9SW RFSOI, will offer significant improvements in performance and integration for 5G and wireless communication applications.
"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,” GF president and CEO Dr Thomas Caulfield commented in a statement.
The company has guided for 4Q net revenue of between $1.83 billion and $1.88 billion and adjusted EPS of between $0.53 and $0.64, above the $0.52 expected by the Street.
Its shares rose 8.4% to $56 by late morning in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com