Why Is GlobalFoundries Stock Sliding On Tuesday?

Zinger Key Points
  • GlobalFoundries beats Q4 revenue and EPS estimates but shares fall on outlook.
  • GFS announces $1B in Automotive revenue for 2023, introduces new CFO amid earnings report.

GlobalFoundries Inc GFS stock dropped after it reported its quarterly earnings Tuesday.

The Malta, New York-based company clocked a fourth-quarter fiscal year 2023 revenue decline of 12% year-on-year to $1.854 billion, beating the consensus of $1.851 billion.

The semiconductor manufacturer’s adjusted EPS of 64 cents beat the consensus of $0.58. 

The adjusted gross margin declined by 110 bps to 29%, and the adjusted operating margin improved by 50 bps to 20.7%.

The adjusted EBITDA margin declined by 260 Y/Y to 41.7%. 

GFS generated $684 million in operating cash flow and held $3.9 billion in cash and equivalents.

“We continue to position GF to drive foundry innovation and differentiation across essential end-markets and we are especially proud of our Automotive end-market revenue growth, with over $1 billion of revenue in 2023. It also gives me great pleasure to welcome John Hollister to GF, as our new CFO,” CEO Thomas Caulfield said.

Outlook: GFS sees first-quarter revenue of $1.5 billion-$1.54 billion versus the $1.76 billion estimate. The company expects adjusted EPS of $0.18-$0.28 versus the $0.46 estimate.

Price Action: GFS shares traded lower by 4.07% at $53.55 premarket on the last check Tuesday.

Now Read: Magnificent 7 Is ‘The Most Crowded Trade’ Among Institutional Investors, With Two-Thirds Dismissing Recession Fears

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceManagementTechBriefsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!