GlobalFoundries Forecasts Q1 Below Estimates Amidst Tariffs and Smartphone Market Headwinds
GlobalFoundries announced its first-quarter revenue and profit estimates, projecting figures below Wall Street consensus. This reflects concerns over potential tariffs targeting the automotive industry and the ongoing challenges in the smartphone market.
Revenue and EPS Estimates
GlobalFoundries expects first-quarter revenue within the range of $1.55 billion to $1.60 billion, a deviation from analysts' estimates of $1.66 billion. On an adjusted basis, the company anticipates earnings per share between 24 cents and 34 cents, falling short of analysts' expectations of 32 cents.
Challenges in Automotive and Smartphone Markets
The automotive sector, a key revenue driver for GlobalFoundries, faces heightened uncertainty due to tariffs on imported steel and aluminum. The company's exclusive agreement with General Motors further exposes it to potential disruptions.
Additionally, the global smartphone market is predicted to experience turbulence in 2025, weighing down on the performance of GlobalFoundries' largest segment.
Financial Performance in Q4
In the fourth quarter of 2024, GlobalFoundries reported revenue of $1.83 billion, missing analysts' expectations of $1.98 billion. Adjusted earnings per share stood at 46 cents, below the estimated 57 cents.
Tim Breen recently assumed the role of CEO, succeeding Thomas Caulfield.