GlobalFoundries (GFS, Financial), a leading semiconductor foundry, reported its third-quarter financial results for the fiscal year 2024, exceeding Wall Street expectations due to a rebound in smartphone semiconductor demand. This optimistic performance resulted in a pre-market stock price increase of nearly 10%, which continued to rise over 10% after the market opened.
As of the latest update, GFS's stock price surged 10.04%, trading at $39.62 per share.
The company provided an optimistic outlook for the fourth quarter, forecasting adjusted earnings per share (EPS) between $0.39 and $0.51, above market expectations of $0.37. Revenue is projected to be between $1.8 billion and $1.85 billion, while analysts estimated $1.8 billion.
For the third quarter, GlobalFoundries reported a 6% year-over-year revenue decline to $1.74 billion, slightly above the expected $1.73 billion. Adjusted EPS was $0.41, outperforming the forecasted $0.33 per share. The company mainly benefits from the recovery in demand for smart mobile devices, which offsets the weakness in the IoT and automotive markets.
Notably, GlobalFoundries' major shareholder is Mubadala Investment Company. The company’s major client, Qualcomm (QCOM), is expected to benefit from the upcoming holiday shopping season due to its role as a key supplier to Apple (AAPL), with optimistic demand for AI-equipped iPhones.
