Contract chipmaker GlobalFoundries on Tuesday beat Wall Street's targets for the first quarter but lowered its outlook for the current period. GFS stock slid on the news.
The Malta, N.Y.-based company earned an adjusted 52 cents a share on sales of $1.84 billion in the March quarter. Analysts polled by FactSet had predicted GlobalFoundries earnings of 50 cents a share on sales of $1.83 billion. On a year-over-year basis, GlobalFoundries earnings rose 24% while sales declined 5%.
For the current quarter, GlobalFoundries predicted adjusted earnings of 50 cents a share on sales of $1.83 billion. That's based on the midpoint of its guidance. Wall Street called for earnings of 51 cents a share on sales of $1.85 billion in the second quarter. In the year-earlier period, GlobalFoundries earned an adjusted 58 cents a share on sales of $1.99 billion.
"In the first quarter, amidst a continued uncertain macroeconomic and cyclical backdrop, GF delivered solid results that are consistent with the guidance we provided in our February earnings release," Chief Executive Thomas Caulfield said in a news release.
GFS Stock Slips After Report
"As we look to the remainder of 2023, we will continue to support our customers' needs, by investing in capacity to strengthen our differentiated solutions, increase our focus on growing end markets and drive value for our stakeholders," Caulfield said.
On the stock market today, GFS stock fell 9.3% to close at 54.23.
In the first quarter, the largest share of GlobalFoundries' revenue came from smart mobile devices at 38% of sales. Communications infrastructure and data center markets provided 19% of revenue. Home and industrial Internet of Things also contributed 19% of sales. Automotive was 10% of revenue.
GFS stock is on the IBD Tech Leaders list.
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