Why GlobalFoundries Rallied Today
Shares of GlobalFoundries (NASDAQ: GFS) were rallying today, up 7.9% as of 2:47 p.m. ET.
The semiconductor foundry company, which concentrates on specialty lagging-edge technologies mostly for mobile, auto, and industrial applications, reported stronger-than-expected growth and provided a better-than-feared outlook. That seemed to calm investor fears over the depth of the current semiconductor downturn.
In the third quarter, GlobalFoundries grew revenue 23.5% to $2.1 billion, with non-GAAP (adjusted) earnings per share of $0.67 growing 857% year over year and 16% quarter over quarter, and also beating expectations. Furthermore, management guided to fourth-quarter revenue between $2.05 billion and $2.1 billion, versus analyst expectations of $2.08 billion. Although that revenue guidance was only in line with expectations, management guided to adjusted EPS between $1.24 and $1.44, versus consensus of just $1.
Source Fool.com
