Why Is GlobalFoundries Stock Sliding On Tuesday?
Portfolio Pulse from Anusuya Lahiri
GlobalFoundries Inc (NASDAQ:GFS) reported a decline in its Q4 FY2023 revenue by 12% year-on-year to $1.854 billion, slightly beating the consensus of $1.851 billion. The semiconductor manufacturer's adjusted EPS of 64 cents also surpassed the expected $0.58. However, the company saw a decline in adjusted gross margin and EBITDA margin, while operating margin improved. GFS generated $684 million in operating cash flow and held $3.9 billion in cash. The company's outlook for Q1 revenue and adjusted EPS is below market estimates, leading to a 4.07% drop in its stock price in premarket trading.
February 13, 2024 | 4:10 pm
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GlobalFoundries Inc reported a Q4 FY2023 revenue decline but beat consensus estimates. The company's Q1 outlook is below market expectations, leading to a premarket stock price drop.
Despite beating Q4 earnings and revenue expectations, GlobalFoundries' stock price dropped due to a weaker Q1 outlook compared to market estimates. This indicates investor concern over the company's short-term financial performance, particularly in revenue and EPS, which are crucial indicators of a company's health and future prospects. The significant premarket stock price movement reflects immediate market reaction to the earnings report and outlook.
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