GlobalFoundries Inc. (GFS) is experiencing a notable premarket price decline of 5.4%, dropping $2.03 to a current price of $35.71. This decrease comes on the heels of the company's recent earnings report for the fourth quarter of 2024, which revealed troubling financial results.
In the report, GlobalFoundries announced a revenue of $1.830 billion, which was lower than the previous quarter's revenue of $1.854 billion. The company also reported a net loss of $729 million, significantly impacting investor confidence. This loss translates to a diluted loss per share of $1.32, which starkly contrasts with the positive earnings per share of $0.50 reported in the same quarter last year.
One of the most alarming figures from the earnings report was a $935 million impairment charge related to long-lived assets. This charge reflects the company's shift in its manufacturing technology platform roadmap, aimed at meeting long-term customer demand. While management indicated that this impairment is not expected to be a recurring issue, it has nonetheless raised concerns among investors.
Additionally, the company’s gross margin fell to 24.5%, down from 28.3% a year ago, further signaling potential operational challenges. With a volume of 42,430 shares traded in premarket, investors are closely monitoring the stock's performance following these revelations.
Looking ahead, GlobalFoundries remains optimistic about its future, citing strong design win momentum across various markets. However, the immediate impact of the earnings report has led to a significant sell-off, as reflected in the current premarket trading activity.
