GLOBALFOUNDRIES Reports Better Than Expected Q3 Results
GLOBALFOUNDRIES (NASDAQ:GFS) reported strong Q3 results and Q4 guidance, but investor attention is understandably focused on macro headwinds intensifying heading into 2023 as a wide array of fabless semiconductor companies have recently lowered their forward guides.
Q3 EPS came in at $0.67, better than the Street estimate of $0.60. Revenue was $2.1 billion, compared to the Street estimate of $2.05 billion.
Analysts at Deutsche Bank raised their price target to $67 from $60 while reiterating their buy rating. Despite the company’s strong execution, growing LTAs, and proactive adjustments to macro reality, the analysts expect most investors will view the company’s ability to grow next year as challenging.
| Symbol | Price | %chg |
|---|---|---|
| AMD.BA | 17424 | 0.59 |
| TXN.BA | 42587.5 | -0.01 |
| 000660.KS | 185300 | 0 |
| LRCX.BA | 18440.5 | 0.1 |
What to Expect From GLOBALFOUNDRIES Upcoming Q4 Results?
Deutsche Bank provided its outlook on GLOBALFOUNDRIES Inc. (NASDAQ:GFS) ahead of the upcoming Q4/22 results announcement.
Despite rising demand weakness/macro headwinds, the analysts believe the company should deliver a solid, approximately in-line Q4, benefitting from a fully booked 2022, backed by fixed/favorably priced long-term agreements.
Looking into fiscal 2023, analysts anticipate that the company should reach its cyclical bottom at some point in the first half of the year, reflecting the trough of the handset market. Taking the year as a whole, the analysts expect the company to be fairly resilient, despite expected weakness in its handset and PC-oriented segments as higher pricing in H2/23 and secure long-term agreements should enable the company to endure the tough macro environment.
