GlobalFoundries Inc. shares surged in the extended session Tuesday after the third-party silicon-wafer foundry’s results and outlook topped Wall Street expectations.
GlobalFoundries GFS, +2.86% shares rallied 7% after hours, following a 2.9% rise in the regular session to close at $56.05. Shares closed 19% above their $47 IPO price from when the company went public in October.
The company reported fourth-quarter net income of $43 million, or 8 cents a share, versus a loss of $524 million, or $1.05 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 18 cents a share, compared with a loss of $1.05 a share in the year-ago period.
Revenue rose to $1.85 billion from $1.09 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of 11 cents a share on revenue of $1.81 billion, based on GlobalFoundries’ forecast of 9 cents to 13 cents a share on revenue of $1.8 billion to $1.83 billion.
“The year was also marked by a growing number of long-term partnership agreements, with 30 customers committing more than $3.2 billion toward the continued expansion of our global manufacturing footprint to support strong demand,” Thomas Caulfield, GlobalFoundries’ chief executive, said in a statement. “We are executing well, and believe we are on track to deliver another year of strong growth in revenue and profitability in 2022.”
For more: Five things to know about GlobalFoundries
The Malta, N.Y.-based company — known as a fabrication plant, or “fab,” 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.
The company reported a 24% gain in smart mobile-device revenue to $888 million from the year-ago period. Communications infrastructure and data-center sales declined 3% to $304 million, home and industrial “Internet of Things” sales rose 20% to $254 million, automotive sales jumped 121% to $93 million, while PC sales declined 56% to $114 million from the year-ago period.
GlobalFoundries forecast adjusted earnings of 21 cents to 27 cents a share on revenue of $1.88 billion to $1.92 billion for the first quarter, Analysts estimate earnings of 17 cents a share on revenue of $1.84 billion for the first quarter.