Contract chipmaker GlobalFoundries late Tuesday crushed Wall Street's earnings target for the first quarter on better-than-expected sales. It also guided much higher for the current period. But GFS stock fell on Wednesday.
The Malta, N.Y.-based company earned an adjusted 42 cents a share on sales of $1.94 billion in the March quarter. Analysts polled by FactSet expected GlobalFoundries earnings of 24 cents a share on sales of $1.9 billion. In the year-earlier period, GlobalFoundries lost 25 cents a share on sales of $1.42 billion.
"We grew revenue 37% year over year, delivered record profitability and made significant progress towards our long-term financial model," Chief Executive Thomas Caulfield said in a news release. "Despite global supply chain challenges, the GF team continues to execute to plan, and we remain on track to deliver a strong year of growth and profitability."
For the current quarter, GlobalFoundries forecast adjusted earnings of 46 cents a share on sales of $1.97 billion. That's based on the midpoint of its guidance. Analysts were looking for earnings of 27 cents on sales of $1.93 billion in the second quarter.
GFS Stock Falls After Report
On the stock market today, GFS stock fell 7% to 49.03 amid a broad market sell-off. During the regular session Tuesday, GFS stock advanced 0.9% to 52.73.
IBD Stock Checkup ranks GFS stock as No. 10 out of 44 stocks in IBD's semiconductor manufacturing industry group. GFS stock has an IBD Composite Rating of 81 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
GlobalFoundries went public in October with its initial public offering priced at $47 a share. GFS stock climbed as high as 73.25 in November before retreating.
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