Earnings Results: GlobalFoundries reports record sales and predicts more to come amid semiconductor shortage

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GlobalFoundries Inc. reported record quarterly revenue and guided for more Tuesday, as the chip manufacturer continues to benefit from a semiconductor shortage.

GlobalFoundries 
GFS,
+0.86%

reported first-quarter net income of $178 million, or 33 cents a share, on revenue of $1.94 billion, up from $1.42 billion in the year-ago quarter. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 42 cents a share, compared with an adjusted loss of 25 cents a share in the year-ago period.

Analysts surveyed by FactSet had forecast earnings of 24 cents a share on revenue of $1.9 billion, based on GlobalFoundries’ forecast last quarter of 21 cents to 27 cents a share on revenue of $1.88 billion to $1.92 billion.

Shares gained less than 1% in after-hours trading immediately following the release of the results, after a 0.9% gain in the regular session to close at $52.73. Shares closed 12.2% higher than their $47 IPO price from the company’s October initial public offering.

For more: Five things to know about GlobalFoundries

The Malta, N.Y.-based company — known for running fabrication plants, or “fabs,” in industry parlance — makes silicon wafers for the majority of chip makers who do not have their own fabs. Since the COVID-19 pandemic, customer waiting lists at third-party fabs like GlobalFoundries have been backlogged for several months owing to the global chip shortage.

GlobalFoundries forecast adjusted earnings of 43 cents to 48 cents a share on revenue of $1.96 billion to $1.99 billion for the second quarter. Analysts on average were projecting earnings of 27 cents a share on revenue of $1.93 billion for the second quarter, according to FactSet.

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