ASML Raises Sales Forecast for Third Time Despite Revenue Miss
Lifted its annual sales forecast for a third time this year, citing stronger demand for chipmaking equipment linked to artificial intelligence investments…
Global chipmakers are seeking more equipment as investment in artificial intelligence expands. ASML raised its annual sales forecast for a third time this year on Wednesday, even as third-quarter revenue narrowly missed analyst expectations and its U.S.-listed shares declined 3% in overnight trading ahead of the session.
The Dutch chipmaking equipment maker reported third-quarter net revenue of 11.66 billion euros, up 55%. Its profit per share beat estimates, but revenue in dollar terms came in at $13.07 billion, below the $13.12 billion expected by analysts surveyed by Koyfin.
Investors had a mixed signal. The revenue miss weighed on the shares, while ASML's higher forecast and comments about future orders pointed to continued demand for equipment used in chip production.
ASML lifts annual outlook
ASML now expects annual sales of 44 billion euros to 45 billion euros, compared with its previous guidance of 43 billion euros to 45 billion euros. It also forecast a gross margin of roughly 56%, up from its earlier range of 54% to 56%.
Net profit climbed to 4.96 billion euros from nearly 2.13 billion euros a year earlier. Earnings per share were 12.93 euros, or $14.51, above the $12.05 analysts expected.
Chief Executive Christophe Fouquet said customers continued to raise their short- and medium-term forecasts for equipment demand. He attributed the shift primarily to expectations for the scale and duration of AI-related investments.
“With such strong visibility and an order book momentum that continues to increase quarter on quarter this year,” Fouquet said, ASML was exploring ways to increase its 2028 capacity beyond the previously communicated 30% expansion.
The capacity outlook matters to chipmakers planning production: ASML said its planned supply for both 2027 and 2028 was expected to fall short of customer demand. Fouquet also said some customers were already expressing interest in orders for 2029 and even 2030.
Demand outlook contrasts with share moves
ASML shares fell alongside Micron, SanDisk and Intel, which declined between 1% and 2.6%. Nvidia also moved into negative territory. The market response came despite the company’s higher sales outlook and stronger earnings per share.
Trading sentiment among retail investors remained upbeat. Stocktwits reported that sentiment toward ASML was in its “extremely bullish” zone, even as the shares ended lower in six of the last seven sessions.
ASML’s shares had surged nearly 80% over the past year, supported by enthusiasm for AI and expectations that demand for chips and semiconductor manufacturing equipment would remain strong. They were still 61% higher year to date, according to the source.
The company’s latest forecast reflects that demand outlook, but the quarterly sales figure came in just below analysts’ estimate. ASML’s expected annual sales range now reaches 45 billion euros.
Source: finance.yahoo.com
