GlobalFoundries (ticker: GFS), a leading contract chip manufacturer, reported solid results for the June quarter but issued guidance slightly below Street estimates. The company is currently facing challenges in certain segments of the semiconductor industry due to excess inventory in end-markets like PC manufacturers.
In a statement, GlobalFoundries CEO Thomas Caulfield acknowledged the impact of “cyclical headwinds and continued macroeconomic uncertainty” on their performance.
For the second quarter, GlobalFoundries generated revenue of $1.845 billion, which is within the company’s projected range of $1.81 billion to $1.85 billion. However, this figure represents a 7% decrease compared to the same period last year. Adjusted profits of 53 cents per share also fell within the company’s forecasted range of 46 cents to 54 cents. Adjusted Ebitda stood at $668 million, showing a 15% decline year-over-year. Silicon wafer shipments were down 9% compared to the previous year.
Looking ahead to the third quarter, GlobalFoundries projects revenue between $1.825 billion and $1.87 billion, marking an 11% decline at the midpoint of the range. Adjusted profits are expected to range from 46 cents to 54 cents per share. Analysts had anticipated revenue of $1.88 billion and adjusted profits of 52 cents per share.
As a result, GlobalFoundries stock has dipped by 2%, trading at $57.95 on Tuesday.