Investors in GlobalFoundries Inc. (NASDAQ:GFS) had a good week, as its shares rose 2.2% to close at US$35.94 following the release of its first-quarter results. It looks like a credible result overall - although revenues of US$1.6b were what the analysts expected, GlobalFoundries surprised by delivering a (statutory) profit of US$0.38 per share, an impressive 94% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, GlobalFoundries' 20 analysts are forecasting 2025 revenues to be US$6.91b, approximately in line with the last 12 months. GlobalFoundries is also expected to turn profitable, with statutory earnings of US$1.40 per share. Before this earnings report, the analysts had been forecasting revenues of US$6.96b and earnings per share (EPS) of US$1.32 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for GlobalFoundries

The consensus price target was unchanged at US$43.26, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values GlobalFoundries at US$55.00 per share, while the most bearish prices it at US$35.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that GlobalFoundries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.5% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 4.7% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually for the foreseeable future. So although GlobalFoundries' revenue growth is expected to improve, it is still expected to grow slower than the industry.

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The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GlobalFoundries following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$43.26, 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 2027, and you can see them free on our platform here..

You can also see our  analysis of GlobalFoundries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

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