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Semiconductor equipment maker ASML (ASML) on Wednesday beat Wall Street’s sales target for the first quarter and matched views on earnings. However, it forecast sales below estimates for the current quarter. Still, ASML stock rose on the news. Meanwhile, industry peer Lam Research (LRCX) was due to report quarterly results after the closing bell. LRCX stock advanced.
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Netherlands-based ASML earned the equivalent of $1.94 a share on sales of $3.97 billion in the March quarter. Analysts expected ASML earnings of $1.94 a share on sales of $3.86 billion, according to FactSet. In the year-earlier period, ASML earned $3.86 a share on sales of $5.25 billion. ASML reports financial results in euros.
For the current quarter, ASML forecast sales of $5.65 billion, based on the midpoint of its outlook. Analysts were looking for second-quarter sales of $6.45 billion, FactSet said.
The Dutch company makes advanced lithography equipment for etching tiny circuits onto semiconductors.
In premarket trading on the stock market today, ASML stock climbed 5.3% to 649.95.
“We continue to see that the demand for our systems is higher than our current production capacity,” Chief Executive Peter Wennink said in a news release. “We are actively working to significantly expand capacity together with our supply chain partners.”
The company also is considering raising its long-term sales outlook, he said.
“In light of the demand and our plans to increase capacity, we expect to revisit our scenarios for 2025 and growth opportunities beyond,” Wennink said. “We plan to communicate updates in the second half of the year.”
Elsewhere, LRCX stock rose 1.6% to 486.60 ahead of the Lam Research earnings report.
Wall Street expects Lam to earn $7.52 a share on sales of $4.25 billion in the March quarter. In the same quarter last year, Lam earned $7.49 a share on sales of $3.85 billion.
ASML stock ranks No. 11 out of 31 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 70 out of 99. LRCX stock ranks No. 15 in the industry group with a Composite Rating of 62.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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