Semiconductor equipment maker ASML (ASML) on Wednesday beat analyst estimates for earnings in the second quarter though sales were a tad light. ASML stock jumped in early trading.
The Dutch company earned the equivalent of $3.04 a share on sales of $4.84 billion in the June quarter. Wall Street had predicted ASML earnings of $3 a share on sales of $4.93 billion. ASML reports financial results in euros. In local currency, ASML earnings rose 41% year over year while sales climbed 21%.
ASML now expects sales to grow about 35% in 2021. It previously targeted 30% growth this year.
For the current quarter, it forecast sales of $6.24 billion, based on the midpoint of its outlook. Analysts had been looking for $5.63 billion in the September quarter.
ASML Stock Rises
In premarket trading on the stock market today, ASML stock advanced 2.9%, near 703.75.
“The demand continues to be high across all market segments and our product portfolio,” Chief Executive Peter Wennink said in a news release. “This is a reflection of the market that is focused on increasing capacity to support the build-up of the digital infrastructure.”
Netherlands-based ASML makes advanced lithography equipment for etching tiny circuits onto semiconductors.
Cowen analyst Krish Sankar said ASML’s second-quarter results were largely in line with consensus estimates while the company’s Q3 guidance was slightly above views. He said ASML’s bookings in the June quarter were “impressive.”
Sankar rates ASML stock as outperform, or buy.
ASML stock is on IBD’s prestigious Leaderboard list. It also is on the IBD 50 and Global Leaders lists. Plus, ASML stock is in the IBD Long-Term Leaders Portfolio.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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