GlobalFoundries’ Q2 results beat estimates, remains focused on ‘disciplined capex strategy’

Update: The story was updated with stock movement.

GlobalFoundries’ (NASDAQ:GFS) stock was largely flat on Tuesday after second quarter results beating estimates.

Non-GAAP EPS fell about 28% year-over-year to $0.38, while net revenue declined around 12% year-on-year to $1.63B. However, both top and bottom line numbers surpassed analysts’ estimates.

“In the second quarter, GF delivered financial results that exceeded the mid-point of the guidance ranges we provided in our May earnings release, thanks to the dedication of our employees across the world,” said GlobalFoundries’ President and CEO Thomas Caulfield. “We remain focused on a disciplined capex strategy and strong cash flow, with over $500 million of cumulative Non-IFRS adjusted free cash flow generation in the first half of 2024.”

The company — which provides mainstream wafer fabrication services — had cash, cash equivalents and marketable securities of $4.1B as of the second quarter.

Outlook: GlobalFoundries expects third quarter net revenue to be between $1.7B and $1.75B; Consensus Revenue Estimate is $1.72B.

The company anticipates non-IFRS EPS in the range of $0.28 to $0.38 for the third quarter; Consensus EPS Estimate is $0.36.

GlobalFoundries’ peer Intel (INTC) was down about -1% but Taiwan Semiconductor (TSM) rose around 5% on Tuesday. GlobalFoundries’ clients including Qualcomm (QCOM) and NXP Semiconductor (NXPI) were up about +2% each, while Advanced Micro Devices (AMD) dipped around -2%.