The GLOBALFOUNDRIES Inc. (NASDAQ:GFS) Annual Results Are Out And Analysts Have Published New Forecasts

Shareholders of GLOBALFOUNDRIES Inc. (NASDAQ:GFS) will be pleased this week, given that the stock price is up 13% to US$57.00 following its latest full-year results. Revenues of US$6.6b were in line with expectations, although statutory losses per share were US$0.50, some 10% smaller than was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for GLOBALFOUNDRIES

Taking into account the latest results, the most recent consensus for GLOBALFOUNDRIES from 15 analysts is for revenues of US$7.67b in 2022 which, if met, would be a meaningful 16% increase on its sales over the past 12 months. GLOBALFOUNDRIES is also expected to turn profitable, with statutory earnings of US$1.45 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$7.66b and earnings per share (EPS) of US$1.46 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$78.60, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on GLOBALFOUNDRIES, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$41.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that GLOBALFOUNDRIES is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.6% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are GLOBALFOUNDRIES' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$78.60, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on GLOBALFOUNDRIES. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for GLOBALFOUNDRIES going out to 2024, and you can see them free on our platform here..

We also provide an overview of the GLOBALFOUNDRIES Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.