GlobalFoundries revenue increased 56 percent YoY as chip demand persists


The massive image: GlobalFoundries for the third quarter ending September 30, 2021, generated $1.7 billion in income, up 5 p.c sequentially and 56 p.c increased than the $1.09 billion earned within the year-ago interval. The outlook is even rosier for the vacation quarter as unprecedented demand for chips continues.

The report included $5 million in revenue in comparison with a $293 million loss in Q3 2020. Earnings per share checked in at $0.01, or $0.07 on an adjusted foundation. Analysts surveyed by FactSet anticipated $1.7 billion in income and a small loss.

Tom Caulfield, CEO of the semiconductor contract producer, mentioned income development was primarily pushed by increased wafer output and product diversification.

Shares in GlobalFoundries are buying and selling down 1.18 p.c as of writing at $68.53, which continues to be roughly 45 p.c increased than its opening worth of $47 again in late October.

GlobalFoundries has had a busy 2021. Over the summer time, rumors surfaced claiming Intel was exploring an acquisition of the corporate for an estimated $30 billion. Executives shortly shot down the scuttlebutt, doubling down on plans to maneuver ahead with an preliminary public providing. The corporate made good on its promise just a few months later and in the present day, has a market cap of greater than $36 billion.

Trying forward, GlobalFoundries expects income to achieve $1.8 billion to $1.83 billion within the fourth quarter, with revenue to vary from $13 million to $33 million. Earnings per share may very well be anyplace between $0.02 and $0.06, or $0.09 to $0.13 on an adjusted foundation.

Picture credit score Laura Ockel

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