ASML Stock: Chip Gear Maker Top Targets Q3

Semiconductor equipment supplier ASML (ASML) on Wednesday beat Wall Street’s targets for the third quarter but offered cautious guidance. However, ASML stock rose in early trading.


The Netherlands-based company earned the equivalent of $4.23 a share on sales of $5.69 billion in the September quarter. Analysts polled by FactSet expected ASML earnings were $3.75 a share on sales of $5.49 billion. During the year-earlier period, ASML earned $4.97 a share on sales of $6.1 billion. ASML reports financial results in euros.

For the current quarter, ASML forecasts revenue of $6.23 billion, based on the midpoint of the outlook. Wall Street modeled $6.375 billion. In the fourth quarter of last year, ASML generated $5.66 billion in revenue.

The Dutch company manufactures advanced lithography equipment for etching microscopic circuits onto semiconductors.

ASML shares rise after report

In pre-market trading on stock market todayASML shares rose 5.5% to 420.75.

“There is uncertainty in the market due to a number of global macroeconomic concerns including inflation, consumer confidence and recession risk,” Chief Executive Peter Wennink said in a statement. New information posted. “While we are beginning to see different demand dynamics across each market segment, overall demand for our systems continues to be strong.”

Furthermore, ASML expects limited impact on its business from US export control regulations targeting China, Wennick said.

Have a good position in the market

Josep Bori, director of topical research at GlobalData, said US bans on the export of advanced chip technology to China will likely continue to weigh on ASML stock. Still, the company’s performance remains commendable, he said.

“Despite a somewhat decelerating revenue growth in Q3 and somewhat soft guidance for Q4, the company remains in a very good position,” said Bori. “Furthermore, its demand remains strong and the 44% year-over-year net booking growth bodes well for future sales.”

ASML stock ranks 11th out of 29 stocks in IBD’s semiconductor industry group, according to Check out the IBD kho repository. It has a subpar IBD Composite Rating 43 out of 99.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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