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GlobalFoundries (GFS) to Report Q4 Earnings: What's in the Offing?
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GlobalFoundries (GFS - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 13.
For the fourth quarter, GFS expects revenues between $1.825 billion and $1.875 billion. The Zacks Consensus Estimate for sales is pegged at $1.85 billion, indicating a decline of 11.9% from the year-ago quarter’s reported value.
The company anticipates earnings in the range of 53-64 cents per share. The consensus mark for the same is pegged at 59 cents per share, indicating a 59% fall from the previous-year quarter’s reported figure.
GlobalFoundries’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 6.4%.
Let’s see how things have shaped up for this announcement.
Strengthening customer partnerships on the back of innovative feature-rich solutions is likely to have benefited GlobalFoundries’ performance during the fourth quarter.
Growing momentum across smart sensing, auto processing and safety applications, owing to strength in its Auto-Grade Technology Platform, is expected to have bolstered the company’s Automotive segment’s performance during the quarter under review.
Solid momentum of the 22FDX platform, driven by growing ultra-low power memory and temperature-resistant capabilities, is likely to have been a major growth driver for the company in the IoT end market during the fourth quarter.
Increasing demand for radio frequency transceiver solutions for premium tier handsets is likely to have acted as a tailwind for the company in the to-be-reported quarter.
The company’s growing demand for its smart card technology solutions across digital payments, transportation, government, health, security and access control markets may have been another positive.
However, weakening momentum across communications infrastructure and data center end markets, due to a combination of elevated inventory levels and the acceleration of node migration to single-digit nano-meters, is expected to have been a major headwind for top-line growth in the quarter under review.
Ongoing weakness in the demand environment and a continuation of inventory correction within the broader smart mobile market are expected to have negatively impacted the company’s smart mobile devices business during the fourth quarter.
Softening demand in the consumer and home electronics market due to increased inventory is likely to have been another negative.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
GlobalFoundries currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
Shopify is set to announce fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for SHOP’s earnings is pinned at 31 cents per share, suggesting growth from the year-ago quarter’s figure of 7 cents per share.
Duolingo (DUOL - Free Report) has an Earnings ESP of +22.09% and a Zacks Rank #1 at present.
Duolingo is set to announce fourth-quarter 2023 results on Feb 28. The Zacks Consensus Estimate for DUOL’s earnings is pinned at 17 cents per share, indicating growth from the year-ago quarter’s loss of 35 cents per share.
Akamai Technologies (AKAM - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present.
Akamai Technologies is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for AKAM’s earnings is pegged at $1.59 per share, suggesting a jump of 16.1% from the prior-year quarter.
Image: Bigstock
GlobalFoundries (GFS) to Report Q4 Earnings: What's in the Offing?
GlobalFoundries (GFS - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 13.
For the fourth quarter, GFS expects revenues between $1.825 billion and $1.875 billion. The Zacks Consensus Estimate for sales is pegged at $1.85 billion, indicating a decline of 11.9% from the year-ago quarter’s reported value.
The company anticipates earnings in the range of 53-64 cents per share. The consensus mark for the same is pegged at 59 cents per share, indicating a 59% fall from the previous-year quarter’s reported figure.
GlobalFoundries’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 6.4%.
Let’s see how things have shaped up for this announcement.
GlobalFoundries Inc. Price and EPS Surprise
GlobalFoundries Inc. price-eps-surprise | GlobalFoundries Inc. Quote
Factors at Play
Strengthening customer partnerships on the back of innovative feature-rich solutions is likely to have benefited GlobalFoundries’ performance during the fourth quarter.
Growing momentum across smart sensing, auto processing and safety applications, owing to strength in its Auto-Grade Technology Platform, is expected to have bolstered the company’s Automotive segment’s performance during the quarter under review.
Solid momentum of the 22FDX platform, driven by growing ultra-low power memory and temperature-resistant capabilities, is likely to have been a major growth driver for the company in the IoT end market during the fourth quarter.
Increasing demand for radio frequency transceiver solutions for premium tier handsets is likely to have acted as a tailwind for the company in the to-be-reported quarter.
The company’s growing demand for its smart card technology solutions across digital payments, transportation, government, health, security and access control markets may have been another positive.
However, weakening momentum across communications infrastructure and data center end markets, due to a combination of elevated inventory levels and the acceleration of node migration to single-digit nano-meters, is expected to have been a major headwind for top-line growth in the quarter under review.
Ongoing weakness in the demand environment and a continuation of inventory correction within the broader smart mobile market are expected to have negatively impacted the company’s smart mobile devices business during the fourth quarter.
Softening demand in the consumer and home electronics market due to increased inventory is likely to have been another negative.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
GlobalFoundries currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
Shopify (SHOP - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Shopify is set to announce fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for SHOP’s earnings is pinned at 31 cents per share, suggesting growth from the year-ago quarter’s figure of 7 cents per share.
Duolingo (DUOL - Free Report) has an Earnings ESP of +22.09% and a Zacks Rank #1 at present.
Duolingo is set to announce fourth-quarter 2023 results on Feb 28. The Zacks Consensus Estimate for DUOL’s earnings is pinned at 17 cents per share, indicating growth from the year-ago quarter’s loss of 35 cents per share.
Akamai Technologies (AKAM - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present.
Akamai Technologies is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for AKAM’s earnings is pegged at $1.59 per share, suggesting a jump of 16.1% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.