GlobalFoundries Stock Drops After Weak Q3 Guidance; Topline Declines Over 7% In Q2
Portfolio Pulse from Anusuya Lahiri
GlobalFoundries Inc (NASDAQ:GFS) reported a 7.4% YoY decline in Q2 FY23 revenue to $1.85 billion, beating the consensus of $1.83 billion. Adjusted EPS of $0.53 also beat the consensus of $0.51. Despite industry headwinds and macroeconomic uncertainty, the company generated $146 million of free cash flow in the quarter. However, GFS provided weak Q3 guidance, expecting revenue of $1.825 billion-$1.870 billion versus the $1.88 billion estimate, and adjusted EPS of $0.46-$0.54 versus the $0.52 estimate. GFS shares traded lower by 0.90% at $58.62.
August 08, 2023 | 4:38 pm
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GlobalFoundries reported a Q2 revenue decline but beat consensus estimates. However, the company's weak Q3 guidance led to a drop in its share price.
Despite beating Q2 estimates, GlobalFoundries' weak Q3 guidance has negatively impacted investor sentiment, leading to a drop in its share price. This suggests that investors are concerned about the company's future performance.
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