Contract chip manufacturer GlobalFoundries Inc. is riding high today, its stock up more than 4% in extended trading after reporting first-quarter earnings and profit that topped analysts’ forecasts as it reaps the benefit of ongoing industry shortages.

The company reported earnings before certain costs such as stock compensation of 42 cents per share on revenue of $1.94 billion, up 37% from a year ago. That helped it to deliver a record quarterly net income of $178 million. Wall Street had been expecting the company to report earnings of just 24 cents per share on sales of $1.9 billion.

Following the report, GlobalFoundries’ stock rose in after-hours trading, adding to a slight gain during the regular session earlier in the day.

GlobalFoundries Chief Executive Thomas Caulfield (pictured) said the company delivered on its commitments to both customers and shareholders during the quarter. “Despite global supply chain challenges, the GF team continues to execute to plan, and we remain on track to deliver a strong year of growth and profitability,” he said in a statement.

GlobalFoundries operates computer chip fabrication plants. “fabs” in industry parlance, that make silicon wafers for other chip suppliers, including Advanced Micro Devices Inc., Samsung Electronics Co. Ltd. and Qualcomm Inc. It’s said to be the third-largest chip fab operator in the world, with five plants globally and more than 15,000 employees.

The company manufactures a wide range of silicon, including radio frequency chips for smartphones, plus chips for smart cars and data center servers.

GlobalFoundries, like most chip firms, has benefited immensely from a global shortage of semiconductors that has allowed it to squeeze more profit out of the products it sells. Evidence of that comes from the company’s adjusted gross margin, which hit a record 25.3% during the quarter, up from 21.5% in the previous quarter.

“Chip demand is going through the roof and it helps all chipmakers, as GlobalFoundries has demonstrated with its record revenue and profit,” said Holger Mueller of Constellation Research Inc. “The vendor managed to swim from a loss per share to a win of an 83 cent per share profit. That’s a rarely seen feat. The question now is, can GlobalFoundries keep up the momentum for the rest of the year?”

GlobalFoundries signaled that it’s optimistic it can do so, at least in the second quarter. The company said it’s expecting adjusted earnings of 43 to 48 cents per share on revenue $1.96 billion to $1.99 billion. Wall Street was anticipating adjusted second-quarter earnings of just 27 cents per share on lower sales of $1.93 billion.

Photo: GlobalFoundries/YouTube