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

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 3.5% in after-hours trading 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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