ASML Stock Rises As Semiconductor Equipment Maker Beats Q4 Estimates

Semiconductor equipment maker ASML (ASML) on Wednesday crushed Wall Street’s targets for the fourth quarter as the chip industry ramps up investment in new capacity. ASML stock rose in early trading.




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The Dutch company earned the equivalent of $3.85 a share on sales of $5.07 billion in the December quarter. Wall Street had predicted ASML earnings of $2.97 a share on sales of $4.5 billion, according to S&P Global Market Intelligence. In the year-earlier period, ASML earned $2.98 a share on sales of $4.48 billion. ASML reports financial results in euros.

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

In premarket trading on the stock market today, ASML stock edged up 0.4%, near 551.40. On Tuesday, ASML stock hit a regular-session record high of 550.48. It ended the day up 4.2% to 549.50.

Continued Growth Seen in 2021

For the first quarter, ASML guided to sales of about $4.85 billion, up 82% year over year.

“For 2021, we expect another year of growth driven by strong logic demand and continued recovery in memory,” Chief Executive Peter Wennink said in a news release. “The buildout of the digital infrastructure and the continued technology innovation is relevant to the consumer, automotive and industrial markets and drives demand across our entire product portfolio.”

Also, ASML announced plans to raise its cash dividend by 15%.

ASML Stock Ranks First In Industry Group

ASML stock is tied for first place in IBD’s Electronics-Semiconductor Equipment industry group, according to the IBD Stock Checkup tool. It has a best-possible IBD Composite Rating of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Ten semiconductor equipment stocks have a 99 IBD Composite Rating. Others include Applied Materials (AMAT), Lam Research (LRCX) and Teradyne (TER).

ASML stock is on IBD’s Global Leaders stock list.

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

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