Why did GlobalFoundries stock go up today? Strong Q3, guidance spurs rally

GlobalFoundries (NASDAQ:GFS) surged more than 9% on Tuesday after the semiconductor foundry reported third-quarter results that topped estimates and issued a strong forecast. For the period ending September 30, GlobalFoundries (GFS) earned an adjusted 67 cents per share on $2.1B in revenue, up 22% year-over-year. Analysts were expecting adjusted earnings of 62 cents per share on $2.05B in revenue. The company also reported record gross margin of 29.4% and adjusted gross margin of 29.9%, while also setting a new record for operating margin at 17.2%. Adjusted operating margins came in at 18.8%. GlobalFoundries (GFS) added that adjusted EBITDA for the quarter was $793M. In a statement, CEO Dr. Thomas Caulfield said the company was able to continue to execute “despite ongoing macroeconomic and geopolitical challenges.” Looking ahead, GlobalFoundries (GFS) said it expects fourth-quarter net revenue to be between $2.05B and $2.1B and adjusted earnings per share between $1.24 and $1.44, compared to estimates of $1 per share.
Last month, GlobalFoundries (GFS) received $30M in federal funding to advance the development and production of next-generation gallium nitride chips at its facility in Vermont.