Financial Performance - Net revenue for Q3 2024 was $1,739 million, a decrease of 6.1% compared to $1,852 million in Q3 2023[8] - Gross profit for Q3 2024 was $414 million, down 21.7% from $529 million in Q3 2023[8] - Operating income for Q3 2024 was $185 million, a decline of 29.1% compared to $261 million in Q3 2023[8] - Net income for Q3 2024 was $178 million, down 28.6% from $249 million in Q3 2023[8] - Basic net earnings per share for Q3 2024 were $0.32, a decrease from $0.45 in Q3 2023[8] - Total comprehensive income for Q3 2024 was $226 million, slightly up from $225 million in Q3 2023[10] - For the nine months ended September 30, 2024, net income was $467 million, a decrease of 37% compared to $740 million for the same period in 2023[17] - The effective tax rate for the three months ended September 30, 2024, was 8.7%, compared to (2.5)% in 2023, primarily due to U.S. withholding tax reclassification[41] - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $0.32, down from $0.45 in 2023, reflecting a decrease of 28.9%[46] Expenses and Investments - Research and development expenses increased to $130 million in Q3 2024, up 20.4% from $108 million in Q3 2023[8] - Depreciation increased to $1,094 million in 2024 from $952 million in 2023, reflecting a rise of approximately 15%[17] - The company incurred share-based compensation of $143 million in 2024, up from $120 million in 2023, representing an increase of about 19%[17] - The company incurred restructuring charges of $1 million for the three months ended September 30, 2024, significantly lower than $17 million in the same period of 2023[50] - The company plans to continue investing in new technologies and market expansion to enhance its competitive position in the semiconductor industry[21] Assets and Liabilities - Total current assets as of September 30, 2024, were $6,598 million, an increase of 4.3% from $6,327 million as of December 31, 2023[5] - Total liabilities decreased to $6,523 million as of September 30, 2024, down 5.4% from $6,893 million as of December 31, 2023[5] - Total equity increased to $11,582 million as of September 30, 2024, up from $11,151 million as of December 31, 2023[5] - Total inventories as of September 30, 2024, increased to $1,802 million from $1,487 million as of December 31, 2023, representing a rise of 21.1%[59] - The net book value of property, plant, and equipment as of September 30, 2024, was $8,950 million, slightly down from $9,000 million as of December 31, 2023[49] - The company reported a total of 1,323 million in trade receivables as of September 30, 2024, down from $1,420 million as of December 31, 2023[54] - Work in progress inventory as of September 30, 2024, was $1,199 million, an increase from $1,005 million as of December 31, 2023[59] Cash Flow and Investments - Net cash provided by operating activities was $1,265 million, down from $1,441 million in the previous year, indicating a decline of about 12%[17] - The company reported a net cash used in investing activities of $1,033 million, compared to $1,787 million in 2023, showing a reduction of approximately 42%[17] - Cash and cash equivalents at the end of the period were $2,286 million, an increase from $1,880 million in the prior year[17] - Investments in marketable securities increased to $2,047 million as of September 30, 2024, up from $1,501 million as of December 31, 2023, reflecting a growth of approximately 36.5%[82] - The company’s total cash equivalents and investments in marketable securities combined amounted to $3,944 million as of September 30, 2024, compared to $3,398 million as of December 31, 2023, an increase of approximately 16.1%[82] Debt and Credit Facilities - Total long-term debt decreased from $2.372 billion as of December 31, 2023, to $2.313 billion as of September 30, 2024[66] - The company has unutilized credit facilities totaling $1.118 billion as of September 30, 2024, compared to $1.058 billion as of December 31, 2023[66] - Future payments under purchase agreements amounted to $591 million as of September 30, 2024, down from $1.1 billion as of December 31, 2023[72] - The company reported cash outflow for leases of $42 million for the nine months ended September 30, 2024, compared to $57 million for the same period in 2023[63] - The company has commitments of $368 million due within the next 12 months as of September 30, 2024[72] Share Repurchase and Equity - On May 22, 2024, the company announced a share repurchase of 3.9 million ordinary shares at a price of $50.75 per share, totaling $200 million[93] - The company completed the share repurchase on May 28, 2024, and subsequently canceled the 3.9 million shares[93] - The company’s investments in equity instruments increased from $19 million as of December 31, 2023, to $25 million as of September 30, 2024, marking a growth of approximately 31.6%[82] Derivatives and Fair Value - The company reported total liabilities for derivatives at $56 million as of December 31, 2023, which decreased to $42 million by September 30, 2024, indicating a reduction of approximately 25%[82] - The fair value of other long-term debt was estimated at $2,256 million as of September 30, 2024, down from $2,319 million as of December 31, 2023, a decrease of about 2.7%[88] - Derivative assets increased from $132 million as of December 31, 2023, to $166 million as of September 30, 2024, representing a rise of approximately 25.8%[82] - The company utilizes the Black-Scholes and Monte Carlo models for estimating the fair value of share-based compensation, which involves subjective assumptions and management judgment[89] Legal Matters - The trial related to IBM's claims is scheduled to commence on February 3, 2025[74]

MALTA, N.Y., Nov. 05, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the third quarter ended September 30, 2024. Key Third Quarter Financial Highlights Revenue of $1.739 billionGross margin of 23.8% and Non-IFRS gross margin(1) of 24.7%Operating margin of 10.6% and Non-IFRS operating margin(1) of 13.6%Net income of $178 million and Non-IFRS net income(1) of $229 millionNon-IFRS adjusted EBITDA(1) of $627 millionCash, cash equivalents and ma ...

MALTA, N.Y., Oct. 07, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Tuesday, November 5, 2024, at 8:30 a.m. ET following the release of the company's third quarter 2024 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, November 5, 2024, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The company's financial r ...

Shares of GlobalFoundries (GFS, Financial) saw a modest increase of 1.98% recently, yet concerns linger due to earlier declines attributed to sector-wide geopolitical and economic challenges. Despite this small uptick, GlobalFoundries has struggled to mirror the recovery observed in other semiconductor stocks. Throughout 2024, GlobalFoundries (GFS, Financial) has experienced significant volatility, with negative returns in six out of nine months leading to a cumulative 36% decrease in stock value. This perf ...

Is GlobalFoundries falling behind in the semiconductor race? Find out how broader market trends are affecting this company and its stock. Shares of GlobalFoundries (GFS 1.80%) fell 13.8% in September 2024, according to data from S&P Global Market Intelligence. The chip sector as a whole took a haircut in the first week of September due to geopolitical and economy concerns. Most of the price drops had reversed into modest gains by the end of the month, but this semiconductor manufacturing specialist stayed d ...

Core Viewpoint - GlobalFoundries is being reassessed in light of a weaker semiconductor industry, with current stock prices potentially offering long-term growth opportunities despite recent challenges [1]. Financial Performance - In 2023, GlobalFoundries reported net revenue of $7.4 billion, down from $8.1 billion in 2022, with a gross profit of $2.1 billion [4]. - The company is expected to see revenue growth from $6.7 billion in 2023 to $7.6 billion in 2024 and $8.6 billion by 2026, indicating a solid growth trajectory [4]. - Earnings per share are projected to increase from $1.39 in 2023 to $1.98 in 2024 and $2.93 in 2026, reflecting a positive outlook for profitability [4]. Balance Sheet Strength - GlobalFoundries has a solid balance sheet with cash and equivalents totaling $2.2 billion and total assets of $17.9 billion, providing financial flexibility [2]. - The current ratio stands at 2.25, indicating good short-term financial health [2]. - The price/book ratio is 1.97, which is lower than the sector median of 3.01, suggesting potential undervaluation for a growth company [2]. Cash Flow Analysis - The company has demonstrated strong operating cash flow, with operating free cash flow of $2.1 billion in 2024 (1H) [5]. - GlobalFoundries is investing heavily in growth, with investing free cash flow of ($1.9 billion) in 2024 (1H), indicating a commitment to expansion [5]. - The company does not currently pay dividends, focusing instead on reinvestment for growth [5]. Industry Context - The semiconductor industry is experiencing a correction, with overcapacity impacting performance, but GlobalFoundries is viewed as a long-term player in this market [6]. - The cyclical nature of the semiconductor industry means that economic conditions can significantly affect demand and investment [3]. - GlobalFoundries relies on a small number of major customers, which could pose risks if any of these customers face downturns [3].

SILICON VALLEY, Calif. and MALTA, N.Y., Sept. 09, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) and Silicon Catalyst, the world's only incubator+accelerator focused exclusively on semiconductor solutions, today announced that GF has joined the incubator's semiconductor startup ecosystem as a Strategic Partner and an In-Kind Partner (IKP). The partnership will provide innovative startups with access to GF's differentiated platforms to speed the development and commercialization of next generati ...

SANTA CLARA, Calif., Aug. 28, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) will kick off its annual Technology Summit series tomorrow, highlighting the critical role of GF-made essential chips in accelerating the impact and ubiquity of artificial intelligence. The theme of "AI Everywhere" will connect the keynotes, panel discussions and deep-dive sessions of GF's annual technology-focused event, which brings together leaders from across the semiconductor industry to share insights on the late ...

GlobalFoundries Inc. (GFS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased sequentially to $1.632 billion, exceeding the midpoint of guidance, but decreased by 12% year-over-year due to lower shipments and utilization levels [12][24] - Non-IFRS gross margin was reported at 25.2%, above the midpoint of guidance [12][29] - Non-IFRS diluted earnings per share were $0.38, exceeding the high end of guidance [12][30] - Cash flow generation for the first half of 2024 was over $500 million, on track to achieve approximately three times the amount of 2023 non-IFRS adjusted free cash flow by the end of 2024 [13][33] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 47% of total revenue, with a 12% sequential increase but a 3% decrease year-over-year [25] - Automotive revenue grew approximately 2% sequentially and 10% year-over-year, representing about 17% of total revenue [27] - Home and industrial IoT markets represented 18% of total revenue, with a 5% sequential decrease and a 28% year-over-year decline [26] - Communications infrastructure and data center segment revenue increased 28% sequentially but declined 27% year-over-year [28] Market Data and Key Metrics Changes - The demand outlook is improving across certain end markets, particularly in automotive and smart mobile devices, as channel inventory levels normalize [6][14] - The automotive sector is highlighted as a growth area, with significant revenue growth expected for 2024 [27] - The IoT market is experiencing high inventory levels, contributing to revenue declines, but long-term opportunities remain [18][26] Company Strategy and Development Direction - The acquisition of Tagore Technologies' gallium nitride power business aims to enhance capabilities in power applications and expand the serviceable addressable market by approximately $1.6 billion by 2030 [9][11] - The company is focused on modernizing manufacturing capabilities and investing in R&D to support GaN manufacturing capacity over the next two to three years [10][11] - Long-term strategy includes positioning for high-volume manufacturing of critical technologies in power applications and serving as a trusted manufacturing partner [11] Management's Comments on Operating Environment and Future Outlook - Management believes the first quarter of 2024 was the low point for revenue, with expectations for sequential growth in subsequent quarters [7][24] - The company is optimistic about the recovery in the automotive sector and anticipates growth in smart mobile devices as inventory levels normalize [14][45] - Management acknowledges macroeconomic factors affecting consumer spending, particularly in the US and China, which may impact future demand [38] Other Important Information - The company expects total revenue for Q3 2024 to be between $1.7 billion and $1.75 billion, with gross profit guidance between $391 million and $438 million [32] - CapEx for 2024 is maintained at approximately $700 million, focusing on innovation and differentiation rather than increasing overall capacity [33][64] Q&A Session Summary Question: Insights on customer conversations regarding inventory correction and demand - Management indicated that while some end markets are still working through inventory corrections, automotive remains a bright spot with meaningful growth opportunities [36][45] Question: Quality of earnings and cash flow expectations - The company noted that free cash flow is expected to remain strong due to previous investments in capacity and customer prepayments [40][41] Question: Revenue outlook for Q3 and Q4 - Management confirmed expectations for sequential revenue growth in Q3 and Q4, driven by recovery in smart mobile devices and continued strength in automotive [44][45] Question: Gross margin trends and factors affecting them - Management explained that low utilization rates are impacting gross margins, but improvements are expected as utilization increases [47][48] Question: Long-term agreements and customer interest - Management stated that long-term agreements remain important, especially in markets with long product cycles like automotive [67][69]