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ASML Rallies On Q1 Beat, 2021 Sales Guidance

Semiconductor equipment maker ASML (ASML) on Wednesday easily beat Wall Street’s targets for the first quarter as chipmakers invest in new capacity to meet demand. It also forecast robust sales growth for 2021. ASML stock rose in early trading.




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The Dutch company earned the equivalent of $3.87 a share on sales of $5.26 billion in the March quarter. Wall Street had predicted ASML earnings of $3.14 a share on sales of $4.86 billion, according to S&P Global Market Intelligence. ASML reports financial results in euros. In the year-earlier period, ASML earned the equivalent of $1.02 a share on sales of $2.66 billion.

The company’s gross profit margin in the first quarter was 53.9%, well above its guidance for 50.5%.

“Compared to three months ago, we are seeing a significant increase in demand across all market segments and our product portfolio,” Chief Executive Peter Wennink said in a news release. “The buildup of the digital infrastructure with secular growth drivers such as 5G, AI and high-performance computing solutions fuels demand for advanced and mature nodes in logic (chips) as well as memory.”

ASML Stock Is On IBD Watchlists

ASML now expects revenue growth of about 30% in 2021, Wennink said. The company previously guided to “double-digit” growth for the year.

Key customers such as Taiwan Semiconductor Manufacturing (TSM), Samsung and Intel (INTC) have increased their capital investment plans in recent weeks in response to heightened chip demand and shortages.

In premarket trading on the stock market today, ASML stock rose 3.5%, near 638.40.

On April 5, ASML stock notched a record high of 653. ASML stock is on the IBD 50 list of top-performing growth stocks as well as IBD’s Global Leaders list.

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

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

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