GLOBALFOUNDRIES INC Reports Second Quarter Financial Results for FY2023
August 11, 2023
🌥️Earnings Overview
GLOBALFOUNDRIES INC ($NASDAQ:GFS) reported a year-on-year decrease of 7.4% in total revenue for their financial results of the second quarter of FY2023 (ending June 30 2023), which were released on August 9 2023. Net income also declined by 9.1%, amounting to USD 240.0 million.
Stock Price
The company’s stock opened at $59.7 and closed at $59.2, representing a 1.5% decrease from the previous closing price of $60.1. These results demonstrate that GLOBALFOUNDRIES INC is continuing to experience a decrease in their profits despite their increased revenue in the second quarter. This could be due to increased expenses in areas such as research and development as the company continues to focus on producing innovative products and services. Despite these decreases, GLOBALFOUNDRIES INC’s second quarter performance still outperforms the industry average, demonstrating that the company is still well-positioned in its sector. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Globalfoundries Inc. More…
| Total Revenues | Net Income | Net Margin |
| 7.86k | 1.5k | 15.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Globalfoundries Inc. More…
| Operations | Investing | Financing |
| 2.19k | -3.29k | 446 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Globalfoundries Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.82k | 7.24k | 19.05 |
Key Ratios Snapshot
Some of the financial key ratios for Globalfoundries Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | – | 21.5% |
| FCF Margin | ROE | ROA |
| -8.4% | 10.2% | 5.9% |
Analysis
GoodWhale has conducted an analysis of GLOBALFOUNDRIES INC‘s fundamentals and have concluded that the company has a high health score of 8/10 with regard to its cashflows and debt, which suggests that it is capable of sustaining future operations in times of crisis. Moreover, due to its high revenue or earnings growth, the company has been classified as a ‘cheetah’, which indicates that it is considered less stable due to lower profitability. Given GLOBALFOUNDRIES INC’s strengths in asset, growth, profitability and its weaknesses in dividend, we believe investors interested in a higher-risk but potentially more rewarding venture may be interested in this company. This type of investor will likely be comfortable with the risk associated with investing in GLOBALFOUNDRIES INC and will be looking for potentially higher returns. More…
Peers
With the technological advances in the semiconductor industry, the competition between foundries has become increasingly fierce. GLOBALFOUNDRIES Inc, a leading foundry company, has been locked in a battle with its competitors, Advanced Micro Devices Inc, Taiwan Semiconductor Manufacturing Co Ltd, and Intel Corp. In order to maintain its competitive edge, GLOBALFOUNDRIES has made significant investments in cutting-edge manufacturing technologies and has been aggressively expanding its production capacity.
– Advanced Micro Devices Inc ($NASDAQ:AMD)
Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. AMD’s main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.
As of 2022, AMD has a market cap of $93.57 billion and a return on equity (ROE) of 4.13%. The company’s products are used in a variety of electronic devices, including personal computers, game consoles, and servers. AMD is a leading supplier of microprocessor technology for the PC market.
– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)
Taiwan Semiconductor Manufacturing Co Ltd is a semiconductor foundry. The company has a market cap of 10.29T as of 2022 and a Return on Equity of 22.34%. Taiwan Semiconductor Manufacturing Co Ltd is the world’s largest dedicated semiconductor foundry and one of the largest fabless semiconductor companies. The company offers a comprehensive set of IC design enablement tools, libraries, IPs, design services, advanced packaging, test and yield optimization solutions to help customers accelerate time-to-market.
– Intel Corp ($NASDAQ:INTC)
Intel Corp. is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley. It is the world’s largest and highest valued semiconductor chip manufacturer based on revenue and is the inventor of the x86 series of microprocessors, the processors found in most personal computers (PCs). Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.
The company’s market cap is $108.48B as of 2022 and has a return on equity of 19.16%. Intel Corp is a technology company that designs and manufactures computer processors and other components. The company is headquartered in Santa Clara, California, in the Silicon Valley.
Summary
GLOBALFOUNDRIES INC reported a decrease in total revenue of 7.4% year-on-year in Q2FY2023, reaching USD1845.0 million. Net income also declined 9.1%, landing at USD 240.0 million. Investors should take note of these lowered numbers as they indicate decreased demand and therefore a potential risk factor for investing. Analysts should continue to monitor the company’s financial performance in the following quarters to get a clear picture of current and future performance.
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