NEW YORK - GLOBALFOUNDRIES (NASDAQ: GFS) reported first-quarter earnings of $0.31 per share, surpassing the analyst consensus by $0.08, and revenue of $1.55 billion, which also beat the consensus estimate of $1.52 billion. The company's stock rose 2% following the announcement, signaling a positive market response to the better-than-expected sales outlook for the upcoming quarter.
In the first quarter, GLOBALFOUNDRIES' revenue demonstrated a robust performance, exceeding the guidance provided earlier in February. Dr. Thomas Caulfield, president and CEO, attributed the strong results to the company's innovation and differentiation efforts in the semiconductor industry's essential markets.
The company's financial success comes alongside strategic expansions, with the U.S. Department of Commerce and New York State awarding funds to enhance manufacturing capabilities in the United States.
Looking ahead, GLOBALFOUNDRIES forecasts second-quarter EPS in the range of $0.24 to $0.34, with a midpoint of $0.29, slightly above the analyst consensus of $0.28. Revenue expectations for the second quarter are set between $1.59 billion and $1.64 billion, with the midpoint at $1.615 billion, which aligns with the consensus estimate of $1.59 billion.
The company's commitment to sustainable operations is evident in its long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon-neutral power by 2050, aligning with the Paris Agreement objectives. These initiatives reflect GF's ongoing "Journey to Zero Carbon" pledge made in 2021.
Dr. Caulfield expressed confidence in the company's trajectory, saying, "As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets."
Investors have responded favorably to the company's financial achievements and strategic direction, as evidenced by the stock's positive movement in the wake of the earnings release.
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