On February 11, GlobalFoundries forecasted first-quarter revenue and profit below Wall Street estimates due to potential impacts of President Donald Trump's tariffs on automakers and a challenging smartphone market in 2025. Despite premarket losses, shares of the Malta, New York State-based company rose nearly 4% in morning trade.
GlobalFoundries anticipates first-quarter revenue between $1.55 billion and $1.60 billion, falling short of analysts' expectations of $1.66 billion. The automotive sector, the company's third-largest revenue segment, is at risk due to tariffs on steel and aluminum imports in the United States.
Furthermore, the company's smartphone segment faces challenges, as the global market is expected to be turbulent in 2025. On an adjusted basis, GlobalFoundries forecasts earnings between 24 cents and 34 cents per share in the first quarter, lower than analyst estimates of 32 cents.
In the fourth quarter, the world's third-largest chipmaker reported revenue of $1.83 billion, meeting estimates. Excluding items, GlobalFoundries posted a profit of 46 cents per share for the fourth quarter, surpassing analysts' expectations of 44 cents.
Earlier this month, Tim Breen was appointed as the new CEO of GlobalFoundries, succeeding Thomas Caulfield. Note: A correction has been made to clarify that fourth-quarter revenue met, not missed, estimates.