By Ben Levisohn
GlobalFoundries stock was jumping after the company reported earnings that easily topped the street consensus.
GlobalFoundries, which offers foundry services and makes semiconductors, reported earnings of 31 cents a share, topping forecasts for 23 cents, on sales of $1.55 billion, above forecasts for $1.52 billion.
Profits and sales slipped from the same quarter one year ago, but the beat was enough to drive shares higher. Global Foundries stock had gained 9.1% at 10:12 a.m. today, on pace for its largest one-day gain since Aug. 12, 2022, when it jumped 12%.
GlobalFoundries credited the end of the inventory destocking as one reason for its better-than-expected results. It also benefited from U.S. government spending dedicated to building semiconductor manufacturing capabilities in the U.S. "As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets," CEO Thomas Caulfield said in the earnings release. "We are delighted with the awards from both the U.S. Department of Commerce and New York State to expand our manufacturing capability in the United States, which will complement our unique global capacity offering."
GlobalFoundries said it would earn 24 cents to 34 cents a share during the second quarter, for a midpoint of 29 cents, in line with estimates for 29 cents. The company expects sales of $1.59 billion to $1.64 billion, against forecasts for $1.59 billion.
Write to Ben Levisohn at ben.levisohn@barrons.com
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(END) Dow Jones Newswires
May 07, 2024 10:51 ET (14:51 GMT)
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