GlobalFoundries Predicts Declining Sales and Earnings in Q1 2024

GlobalFoundries, a leading chipmaker, is expecting a decrease in sales and earnings during the first quarter of 2024. This comes after the company's financial performance declined in the final three months of 2023.

Fourth-Quarter Performance

In the fourth quarter, GlobalFoundries reported a profit of $278 million, equivalent to 50 cents per share. This is a decrease from $668 million, or $1.21 per share, during the same period the previous year. However, after accounting for one-time items, adjusted earnings amounted to 64 cents per share, surpassing the consensus estimate of 59 cents per share from analysts surveyed by FactSet.

Declining Revenue

Revenue for the chipmaker dropped to $1.85 billion in the fourth quarter, compared to $2.1 billion in the year-ago quarter. This aligns with analyst forecasts.

Q1 2024 Outlook

For the first quarter of 2024, GlobalFoundries projects earnings ranging from 7 to 19 cents per share on revenue between $1.5 billion and $1.54 billion. Analysts polled by FactSet, on the other hand, anticipate first-quarter earnings of 75 cents per share on $1.77 billion in revenue.

The company's adjusted earnings outlook for 18 to 28 cents per share also falls short of current analyst expectations of 47 cents per share.

While facing declining sales and earnings, GlobalFoundries aims to navigate these challenges and drive future growth.