Shares of chip maker GlobalFoundries (NASDAQ:GFS) jumped in trading after the company reported earnings for the third quarter of FY23. The company’s adjusted earnings per diluted share came in at $0.55, a decline of 18% year-over-year but still beat analysts’ consensus estimate of $0.50 per share.
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The company’s net revenues declined by 11% year-over-year to $1.85 billion, in line with analysts’ expectations.
Dr. Thomas Caulfield, President and CEO of GlobalFoundries, commented, “Although the global economic and geopolitical landscape remains uncertain, we are collaborating closely with our customers to support their efforts to reduce inventory levels, while growing long-term partnerships to drive foundry innovation and differentiation across essential end-markets.”
Looking forward, management now expects Q4 revenues in the range of $1.83 billion to $1.87 billion and adjusted earnings per share to be between $0.44 and $0.57 (on an IFRS basis).
Is GFS a Good Stock to Buy?
Analysts are bullish about GFS stock with a Strong Buy consensus rating based on seven Buys and two Holds. The average GFS price target of $74.59 implies an upside potential of 33.1% at current levels.
