Earnings Results: GlobalFoundries stock rises after first results as public company top Street view

The company reported third-quarter net income of $5 million, or a penny a share, versus a loss of $293 million, or 58 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 7 cents a share.

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Revenue rose to $1.7 billion to $1.09 billion in the year-ago quarter, GlobalFoundries reported.

Analysts surveyed by FactSet had forecast a loss of a penny a share on revenue of $1.7 billion.

A month ago, the company had forecast a gross profit of about $290 million to $300 million for the September-ending quarter on revenue of about $1.7 billion.

The Malta, N.Y.-based company — known as a fabrication plant, or “fab,” in industry parlance — makes silicon wafers for the majority of chip makers who do not have their own fabs. Since the COVID-19 pandemic, customer waiting lists at third-party fabs like GlobalFoundries have been backlogged for several months owing to the global chip shortage.

“Our revenue growth was primarily driven by higher wafer output and continued improvement in mix as our differentiated solutions become a larger portion of our total business,” said Thomas Caulfield, GlobalFoundries chief executive, in a statement. “We expect continued revenue and profit growth in the fourth quarter.”

For more: Five things to know about GlobalFoundries

GlobalFoundries forecast adjusted earnings of 9 cents to 13 cents a share on revenue of $1.8 billion to $1.83 billion for the fourth quarter.

Analysts had estimated earnings of 9 cents a share on revenue of $1.8 billion for the fourth quarter.