Shares of GlobalFoundries Inc. rose in Tuesday's extended session after the third-party silicon wafer foundry's results and outlook beat Wal Street expectations.
Shares were up 7% after the close after rising 2.9% in the regular session to close at $56.05. Shares closed 19% above its IPO price of $47 since the company's IPO in October.
The company reported net income of $43 million, or 8 cents a share, for the fourth quarter, compared to a loss of $524 million, or $1.05 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expense and other items, were 18 cents per share compared to a loss of $1.05 in the year-ago period.
Revenue increased to $1.85 billion from $1.09 billion in the year-ago quarter.
Analysts polled by FactSet had forecast earnings of 11 cents a share on sales of $1.81 billion, based on GlobalFoundries' forecast of 9 to 13 cents a share on sales of $1.8 billion to $1.83 billion U.S. dollar.
"The year was also marked by a growing number of long-term partnership agreements, with 30 customers committing more than $3.2 billion to continue expanding our global manufacturing footprint to support strong demand," said Thomas Caulfield, chief executive of GlobalFoundries a statement. "We are performing well and believe we are on track to deliver another year of strong revenue and profitability growth in 2022."
Learn more: Five things you should know about GlobalFoundries
The Malta, New York-based company — known in technical jargon as a fabrication facility or "fab" — manufactures silicon wafers for the majority of chipmakers that do not have their own fabs. Since the COVID-19 pandemic, customer waitlists at third-party providers like GlobalFoundries have been behind for several months due to global chip shortages.
The company reported a 24 percent increase in smart mobile device sales to $888 million over the same period last year. Communications infrastructure and data center revenue fell 3% to $304 million, residential and industrial IoT revenue was up 20% to $254 million, and automotive revenue was up 121% to 93 million dollars, while PC sales fell 56% to $114 million in the period a year ago.
GlobalFoundries is forecasting adjusted earnings of 21 to 27 cents a share on sales of $1.88 to $1.92 billion for the first quarter. Analysts are expecting earnings of 17 cents per share on sales of $1.84 billion for the first quarter.