Why Semiconductor Giant GlobalFoundries (GFS) Stock Is Tumbling Today - GLOBALFOUNDRIES (NASDAQ:GFS)

GlobalFoundries Inc GFS reported a first-quarter FY23 revenue decline of 5% year-on-year to $1.84 billion, beating the consensus of $1.83 billion.
Adjusted EPS of $0.52 beat the consensus of $0.49.
The adjusted gross margin expanded by 320 bps to 28.5%, and adjusted operating margin grew by 330 bps to 17.7%.
The adjusted EBITDA margin was flattish Y/Y at 35.6%. GFS generated $479 million in operating cash flow and held $3.23 billion in cash and equivalents.
"In the first quarter, amidst a continued uncertain macroeconomic and cyclical backdrop, GF delivered solid results that are consistent with the guidance we provided in our February earnings release," said Dr. Thomas Caulfield, president and CEO of GFS.
CFO Transition: GlobalFoundries names Tim Stone as the new CFO, succeeding David Reeder, who will leave the company after transitioning to Stone over the coming months.
Stone brings a world-class finance pedigree to GF, including more than 20 years building Amazon.Com Inc's AMZN global business in senior finance roles, including CFO for the AWS and Devices businesses as well as the CFO for public companies Ford Motor Co F and Snap Inc SNAP. He was most recently the CFO of a private AI software company.
Outlook: GFS sees Q2 revenue of $1.81 billion - $1.85 billion versus the $1.85 billion estimate. It expects adjusted EPS of $0.46 - $0.54 versus the $0.48 estimate.
Price Action: GFS shares traded lower by 8.36% at $54.80 on the last check Tuesday.

Why Semiconductor Giant GlobalFoundries Stock Is Tumbling Today