Chip Gear Maker ASML Beats Second-Quarter Targets, Guides Higher

Semiconductor equipment supplier ASML (ASML) on Wednesday beat analyst estimates for the second quarter and with its guidance for the current period. But ASML stock dipped in early trading.


The Dutch company earned the equivalent of $5.37 a share on sales of $7.52 billion in the June quarter. ASML reports financial results in euros.

Analysts polled by FactSet had expected ASML earnings of $5.10 a share on sales of $7.39 billion. In the year-earlier period, ASML earned $3.62 a share on sales of $5.55 billion, FactSet said.

For the current quarter, ASML forecast sales of $7.57 billion, based on the midpoint of its guidance. Analysts were looking for $7.14 billion in sales for the third quarter. In the same quarter last year, ASML posted sales of $5.66 billion.

Also, ASML predicted sales growth of 30% in 2023, vs. Wall Street’s goal of 27%.

ASML Stock Is On Six IBD Lists

In premarket trading on the stock market today, ASML stock slid 1% to 749.46.

The Netherlands-based company makes advanced lithography equipment for etching tiny circuits onto semiconductors.

“Our customers across different market segments are currently more cautious due to continued macroeconomic uncertainties, and therefore expect a later recovery of their markets,” Chief Executive Peter Wennink said in a news release. “Also, the shape of the recovery slope is still unclear.”

He added, “However, our strong backlog of around 38 billion euros ($42.6 billion) provides us with a good basis to navigate these short-term uncertainties.”

ASML stock is on at least six IBD lists. They include the IBD 50, Leaderboard, Big Cap 20, Sector Leaders, Global Leaders and Tech Leaders.

ASML Is A Recent Breakout

Wells Fargo analyst Joe Quatrochi said ASML’s second-quarter report was positive but its commentary warned of a softening of demand in 2024. Still, he reiterated his overweight, or buy, rating on ASML stock with a price target of 775.

On July 13, ASML stock broke out of a flat base at a buy point of 747.13, according to IBD MarketSmith charts.

ASML is tied for first place in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.

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


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