GLOBALFOUNDRIES Inc. (GFS) Stock up in Aftermarket, Here’s why?

GLOBALFOUNDRIES Inc. (GFS) is a leading global semiconductor producer. The company is engaged in the development and delivery of feature-rich process technology solutions. The company is also the provider of leadership performance in high-growth markets. The company offers an exclusive blend of design, development, and fabrication facilities.

The price of GFS stock during the regular trading on February 8, 2022, was $56.05 with a 2.86% surge. At last check in the aftermarket, the stock gained by 4.14%.

GFS: Key Financials

On February 8, 2022, GFS released its financial results for the fourth quarter of 2021 ended December 31, 2021. Some of the major highlights are as follows.

Revenue

Total revenue in Q4 2021 was $1.84 billion compared to $1.06 billion in the same quarter of 2020. The company observed an increase of $785 million or 74% in revenue over the period of the year. The company beat the estimated revenue target by $32.09 million.

EPS

Diluted net income per share in Q4 2021 was $43 million or $0.08 compared to a net loss of $524 million or $1.05 in the same period of 2020. The net loss decreased by 108% over the yearly period.  The company beat the estimated EPS by $0.07 per share.

GFS: Events and Happenings

On February 8, 2022, GFS informed about its recent filing with the SEC regarding a report of foreign issuer rules of the Securities Exchange Act. GFS also updated about its Executive management participation at the following events.

• 24^th Annual Needham Growth Conference on January 13, 2022, and
• JP Morgan 20^th Annual Tech/Auto Forum During the International CES 2022 on January 5, 2022.

On December 23, 2021, GFS announced agreeing to modify its Wafer Supply Agreement with AMD. Both the parties agreed to rise the volume of the chips that the company will deliver along with the extension of contract terms to lock the supply through 2025.

Conclusion

GFS stock is outperforming from the past year despite the challenges faced by the companies due to pandemics. The company’s stock inclined by 20% in the past year. The current aftermarket stock surge is the result of its exceptional fourth-quarter results as the company beat the revenue and EPS estimates of the analysts. The company is also expecting sound results in the first fiscal quarter of 2022 as the estimated revenue is $1.85 billion and the estimated EPS is $0.18.