Semiconductor equipment leader ASML (ASML) early Wednesday beat estimates for earnings in the first quarter but missed views on sales. Its guidance also was below expectations. ASML stock fell in early trading.
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The Dutch company earned the equivalent of $3.31 a share on sales of $5.62 billion in the March quarter. ASML reports financial results in euros. Analysts polled by FactSet had expected ASML earnings of $3.15 a share on sales of $5.87 billion. In the year-earlier period, ASML earned $5.44 a share on sales of $7.39 billion, FactSet said.
For the current quarter, ASML predicted sales of $6.33 billion, based on the midpoint of its guidance. Analysts had been looking for $6.89 billion in the second quarter. In the same period last year, ASML’s sales totaled $7.72 billion.
The Netherlands-based company makes advanced lithography equipment for etching tiny circuits onto semiconductors.
Leaves Full-Year Outlook Intact
In premarket trading on the stock market today, ASML stock fell 3.9% to 939.
“Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn,” Chief Executive Peter Wennink said in a news release.
He added, “We see 2024 as a transition year with continued investments in both capacity ramp and technology, to be ready for the turn in the cycle.”
ASML Stock Is On Four IBD Lists
Bernstein analyst Sara Russo reiterated her outperform rating on ASML stock with a price target of 1,052.
“While bookings and guidance were below expectations, we continue to believe in the setup for a stronger second-half 2024 and significant growth in 2025,” she said in a client note. “ASML continues to build a solid backlog to underpin that expected growth.”
ASML stock is on five IBD lists: Leaderboard, IBD 50, Big Cap 20, Global Leaders and Tech Leaders.
Also, ASML stock has formed a flat base with a buy point of 1,056.34, according to IBD MarketSurge charts.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
