GlobalFoundries shares had fallen 4% this year so far ahead of the earnings report.
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GlobalFoundries stock was rising early Tuesday after the contract chip manufacturer beat expectations for its third-quarter earnings.
GlobalFoundries
(ticker: GFS) produces components for a range of semiconductor companies. The company said it continues to deal with excess inventory in some markets but its guidance indicated a market improvement.
The company reported adjusted earnings of 55 cents a share for the third quarter, down from 67 cents for the same period a year earlier. Net revenue fell 11% to $1.85 billion.
GlobalFoundries was expected to report adjusted earnings of 50 cents a share on revenue of $1.85 billion, according to a FactSet poll of analysts’ estimates.
GlobalFoundries stock was up 5.8% in early trading. The rise takes the stock just into positive territory this year so far as semiconductor stocks have been hit by concerns over the global economy and a glut of chips in certain sectors such as PCs, mobile phones, and consumer-electronics products.
American depositary receipts of
Taiwan Semiconductor Manufacturing
(TSM), the world’s biggest contract-chip maker, were down 0.7%.
“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,” CEO Thomas Caulfield said in a statement.
GlobalFoundries expects fourth-quarter adjusted earnings of 53 cents to 64 cents on revenue of $1.83 billion to $1.88 billion. Analysts had expected earnings of 53 cents a share on revenue of $1.89 billion, according to FactSet.
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