The third quarter earnings report from GlobalFoundries (GFS) showed a beat on expectations for earnings and matched views on sales. However, the guidance for the current period was mixed, causing GFS stock to rise in early trading on Tuesday.
GlobalFoundries, based in Malta, N.Y., reported earnings of 55 cents a share on sales of $1.85 billion in the September quarter. This exceeded the 50 cents a share in earnings and matched sales expectations from analysts. However, on a year-over-year basis, GlobalFoundries earnings declined 18% and sales dropped 11%.
For the current quarter, GlobalFoundries projected adjusted earnings of 59 cents a share on sales of $1.85 billion, indicating a mixed outlook. This was contrary to analysts’ expectations of 53 cents a share on sales of $1.89 billion in the fourth quarter. In the year-earlier period, GlobalFoundries earned $1.44 a share on sales of $2.1 billion.
Chief Executive Thomas Caulfield stated in a news release, “Although the global economic and geopolitical landscape remains uncertain, we are collaborating closely with our customers to support their efforts to reduce inventory levels, while growing long-term partnerships to drive foundry innovation and differentiation across essential end-markets.”
GFS Stock Rises After Report
On a year-over-year basis, GlobalFoundries revenue has fallen for three consecutive quarters. In premarket trading on Tuesday, GFS stock advanced 3.6% to 53.50.
Other semiconductor stocks moving after releasing third-quarter results included NXP Semiconductors (NXPI) and Alpha and Omega Semiconductor (AOSL).
Mixed Report From NXP Semiconductors
NXP’s third-quarter results edged above forecasts while its outlook was slightly below views. Meanwhile, Alpha and Omega narrowly topped estimates in the September quarter but missed the mark in its sales guidance.
NXP earned an adjusted $3.70 a share on sales of $3.43 billion in the third quarter, slightly exceeding analysts’ expectations. For the current quarter, NXP forecast adjusted earnings of $3.65 a share on sales of $3.4 billion, which fell slightly below analyst estimates.
AOS Guidance Well Below Views
Alpha and Omega Semiconductor, known as AOS, earned an adjusted 33 cents a share on sales of $180.6 million in its fiscal first quarter ended Sept. 30. Although it narrowly topped estimates in the September quarter, its year-over-year earnings and sales declined significantly. AOS predicted sales of $165 million for its fiscal second quarter ending Dec. 31, well below Wall Street’s goal of $175.6 million.
NXP ranks third out of 32 stocks in IBD’s semiconductor manufacturing industry group, according to the IBD Stock Checkup, while GFS stock ranks No. 15 in the group. AOS ranks No. 18 out of 37 stocks in IBD’s fabless semiconductor industry group.
In premarket trading Tuesday, NXP stock fell 3.7% to 176.05, and AOS stock slid 1.7% to 25.01.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software, and semiconductor stocks.
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