Chip Gear Maker ASML Beats On Earnings But Misses Sales Target

Semiconductor equipment maker ASML (ASML) on Wednesday beat analyst estimates for earnings in the third quarter but its sales came up short. Its revenue guidance also was light. ASML stock dropped on the news.


The Dutch company earned the equivalent of $4.97 a share on sales of $6.1 billion in the September quarter. Analysts expected ASML earnings of $4.61 a share on sales of $6.19 billion, according to FactSet. In the year-earlier period, ASML earned $2.99 a share on sales of $4.65 billion. ASML reports financial results in euros.

For the current quarter, ASML forecast sales of $5.87 billion, based on the midpoint of its outlook. Analysts were looking for fourth-quarter sales of $6.12 billion, FactSet said.

Chief Financial Officer Roger Dassen said component shortages are impacting production and crimping sales. Netherlands-based ASML makes advanced lithography equipment for etching tiny circuits onto semiconductors.

ASML Stock Drops On Report

In morning trades on the stock market today, ASML stock fell 3.9%, near 770.

“The demand continues to be high,” ASML Chief Executive Peter Wennink said in a news release. “The ongoing digital transformation and current chip shortage fuel the need to increase our capacity to meet the current and expected future demand for memory and for all logic nodes.”

He added, “For the full year, we are on track to achieving growth approaching 35%.”

ASML stock ranks second out of 32 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 96 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

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


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