Contract chipmaker GlobalFoundries late Tuesday beat Wall Street's targets for the fourth quarter and guided higher for the current period. GlobalFoundries stock jumped in extended trading.
The Malta, N.Y.-based company earned an adjusted 18 cents a share on sales of $1.85 billion in the December quarter. Analysts had expected earnings of 11 cents a share on sales of $1.82 billion, according to FactSet. GlobalFoundries earnings rose 117% year over year on an absolute value basis while sales increased 74%.
For the first quarter, GlobalFoundries forecast adjusted earnings of 24 cents a share on sales of $1.9 billion. That's based on the midpoint of its guidance. Analysts had been modeling earnings of 17 cents a share on sales of $1.84 billion.
"2021 was an outstanding year for GF, during which we drove an acceleration of our business plan by capitalizing on the demand for pervasive semiconductor solutions and the vital role we play in the semiconductor supply chain," Chief Executive Tom Caulfield said in a news release.
In 2021, GlobalFoundries entered into 30 significant long-term customer agreements, he said. Those agreements included an extension of its wafer supply agreement with Advanced Micro Devices.
GlobalFoundries Stock Rises On Earnings Report
In after-hours trading on the stock market today, GlobalFoundries stock rose 1.7%, near 57. During the regular session Tuesday, GlobalFoundries stock climbed 2.9% to close at 56.05.
GlobalFoundries went public in October with its IPO priced at $47 a share. GFS stock hit a record high of 73.25 on Nov. 29.
GlobalFoundries is controlled by Mubadala Investment, the sovereign wealth fund of the United Arab Emirates.
GlobalFoundries stock ranks No. 15 out of 40 stocks in IBD's semiconductor manufacturers industry group, according to IBD Stock Checkup. It has a decent IBD Composite Rating of 81 out of 99. The best growth stocks have a Composite Rating of 90 or better.
Chip Gear Stocks Moving On Earnings
Elsewhere in the semiconductor sector, several chip gear makers were moving on earnings news.
Axcelis Technologies stock popped 6.4% higher to 67.28 on Tuesday after the company delivered better-than-expected results for the fourth quarter. Beverly, Mass.-based Axcelis late Monday said it earned $1.05 a share, up 144% year over year, on sales of $205.7 million, up 68%.
Ichor Holdings and Onto Innovation reported their fourth-quarter results late Tuesday.
Ichor stock tumbled after the Fremont, Calif.-based company missed its Q4 sales and earnings targets and disappointed with its first quarter outlook.
Onto Innovation stock rose after the Wilmington, Mass.-based company easily beat Wall Street's Q4 targets and it gave first quarter guidance that topped consensus estimates.
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