Contract chipmaker GlobalFoundries (GFS) on Tuesday beat Wall Street’s targets for the third quarter. It also guided much higher for profits in the current period. GFS stock rose in early trading.
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The Malta, N.Y.-based company earned an adjusted 67 cents a share on sales of $2.07 billion in the September quarter. Analysts polled by FactSet expected GlobalFoundries earnings of 62 cents a share on sales of $2.05 billion. In the year-earlier period, GlobalFoundries earned 7 cents a share on sales of $1.7 billion.
For the current quarter, GlobalFoundries forecast adjusted earnings of $1.34 a share on sales of $2.08 billion. That’s based on the midpoint of its outlook. Wall Street had predicted earnings of $1.05 a share on sales of $2.086 billion in the fourth quarter.
“In the third quarter, the GF team continued to execute on its commitments to customers and shareholders despite ongoing macroeconomic and geopolitical challenges,” Chief Executive Thomas Caulfield said in a news release.
GFS Stock Rises After Report
“Our revenue grew 22% year over year, and we delivered record gross, operating, and net profits, making significant progress towards our long-term financial model,” Caulfield said. “We remain on track to deliver a strong year of growth and profitability.”
In premarket trading on the stock market today, GFS stock jumped 6.1% to 59.70.
GFS stock has been consolidating for the past 13 weeks at a buy point of 66.06, according to IBD MarketSmith charts.
Other semiconductor stocks moving on earnings news Tuesday included Diodes (DIOD) and SkyWater Technology (SKYT), which posted results late Monday.
Diodes delivered roughly in-line third-quarter results and guidance. SkyWater posted better-than-expected third-quarter results and outlook. Diodes showed no premarket action, but SkyWater surged 8.3% to 9.36.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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