GlobalFoundries revenue increased 56 percent YoY as chip demand persists
GlobalFoundries for the third quarter ending September 30, 2021, generated $1.7 billion in revenue, up five percent sequentially and 56 percent higher than the $1.09 billion earned in the year-ago period. The outlook is even rosier for the holiday quarter as unprecedented demand for chips continues.
The report included $5 million in profit compared to a $293 million loss in Q3 2020. Earnings per share checked in at $0.01, or $0.07 on an adjusted basis. Analysts surveyed by FactSet expected $1.7 billion in revenue and a small loss.
Tom Caulfield, CEO of the semiconductor contract manufacturer, said revenue growth was primarily driven by higher wafer output and product diversification.
Shares in GlobalFoundries are trading down 1.18 percent as of writing at $68.53, which is still roughly 45 percent higher than its opening price of $47 back in late October.
GlobalFoundries has had a busy 2021. Over the summer, rumors surfaced claiming Intel was exploring an acquisition of the company for an estimated $30 billion. Executives quickly shot down the scuttlebutt, doubling down on plans to move forward with an initial public offering. The company made good on its promise a few months later and today, has a market cap of more than $36 billion.
Looking ahead, GlobalFoundries expects revenue to reach $1.8 billion to $1.83 billion in the fourth quarter, with profit to range from $13 million to $33 million. Earnings per share could be anywhere between $0.02 and $0.06, or $0.09 to $0.13 on an adjusted basis.