Globalfoundries Inc (NASDAQ:GFS) stock rose 0.82% (As on Feb 9, 11:58:20 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. In 2021, GFS entered into 30 significant long-term customer agreements that provide assurance to the customers and provide revenue visibility to GF. In 2021, GFS broke ground on a new fab on its Singapore campus, expanded capacity in Fab 1 (Dresden) by over 25%, and announced expansion plans for its most advanced manufacturing facility in upstate New York. On October 28, 2021, GFS began trading on Nasdaq Stock Market under the ticker “GFS.”
GFS in the fourth quarter of FY 21 has reported the adjusted earnings per share of 18 cents, beating the analysts’ estimates for the adjusted earnings per share of 11 cents. The company had reported the adjusted revenue growth of 74 percent to $1.85 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.81 billion. For the quarter, the company delivered adjusted gross margin of 21.5%, adjusted operating margin of 8%, Net income margin of 2% and adjusted EBITDA margin of 32%. Cash and cash equivalents were of $2.9 billion at the end of the period.
For Q1, the contract chipmaker said it expects EPS of $0.10 to $0.17 on revenue of $1.88 billion to $1.92 billion. For the company’s first quarter of fiscal 2022, analysts are forecasting GAAP EPS of $0.07 on revenue of $1.85 billion. Q1 2022, gross profit is expected to be in the range of $383 – $413 million, operating profit is expected to be in the range of $101- $145, operating margin to be about 6.5% and net income to be between $54 – $96 million. For the full fiscal year, Globalfoundries is expected to post adjusted EPS of $1.75, up from a loss of $0.14 in the prior year, on sales of $7.66 billion, up 17%.
Meanwhile, in the fourth quarter, GF announced an extension of its wafer supply agreement with AMD, increasing the number of chips GF will supply, as well as extending the terms of the agreement to secure supply through 2025. In the fourth quarter, BMW signed a direct supply assurance agreement with high-tech microchip developer INOVA Semiconductors and GF to secure long-term semiconductor supplies. In the fourth quarter, GF and Ford announced a non-binding strategic collaboration to advance semiconductor manufacturing and technology development within the US, aiming to boost chip supplies for Ford and the US auto industry.