ASML Holding NV (ADR) (NASDAQ: ASML) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The Dutch tool and equipment supplier for the semiconductor industry provided stronger-than-expected fourth quarter results. Today, we’ll talk about the results, what we’re seeing from ASML, and what we’ll be watching for ahead.
ASML Smashes Q4 Expectations
As mentioned above, ASML Holding is having an incredibly strong day in the market today after the company released stronger-than-expected earnings for the fourth quarter. In fact, the earnings were so strong that many are pointing to a “supercycle” in global chip demand. Here’s what we saw from the earnings report:
- Earnings – In the release, ASML said that earnings for the fourth quarter came in at €644 million. That’s a massive 23% increase, and it dwarfs analyst expectations of €454 million.
- Guidance – In the release, the company also gave some pretty strong guidance. In fact, the company said that in the first 3 months of the year, it is expecting to generate €2.2 billion and that margins would improve to as high as 48%.
In a statement, Peter Wennink, CEO at ASML, had the following to offer:
“These results reflect our technology leadership and the success of our comprehensive product portfolio as well as the strong growth fundamentals in our industry, which enable the continued innovation in personal electronics, artificial intelligence, cloud computing and mobility… For 2018 we expect continued solid growth of sales and profitability.”
What We’re Seeing From The Stock
One of the first things that we learn as investors is that the news move the market. In this particular case, the news proved to be overwhelmingly positive, leading to strong gains in the value of ASML Holdings. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:05), ASML is trading at $197.15 per share after a gain of $10.77 per share (5.78%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ASML. In particular, we’re interested in following the continued growth in chip sales, leading to growth in both revenue and earnings. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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