GlobalFoundries Holds Steady Despite Market Challenges, Analysts Project Recovery in Second Half 2024

  • By Grand News Network
  • |
  • November 8, 2023

Needham analyst N. Quinn Bolton reiterated a Hold rating on GlobalFoundries Inc (NASDAQ: GFS).

GlobalFoundries reported an inline quarter and guide excluding customer LTA resolutions and CHIPS Act tax credits. 

The excess inventory across multiple end markets will last into FY24. Bolton pushed out his recovery to 2H24 vs. 2Q24 prior. 

Customer LTA adjustments and solid manufacturing execution aided gross margins. 

The sizeable operating expenditure swing in 4Q reflects a full year's of tax credits. 

Bolton modeled CY24 CapEx at $1 billion, -50% Y/Y and below the Street's prior $1.4 billion estimate as GFS turns its focus to FCF, where estimates came down substantially.

The analyst projected a Q4 revenue and EPS of $1.850 billion (prior $1.875 billion) and $0.59 (prior $0.51).

Raymond James analyst Melissa Fairbanks reiterated an Outperform rating and $75 price target on ...

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