Semiconductor equipment maker 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 late Wednesday reported March-quarter results that missed estimates. LRCX stock fell in response.
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.
ASML Stock Climbs After Report
On the stock market today, ASML stock climbed 2.7% to close at 633.91.
"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."
LRCX Stock Falls Late
Elsewhere, Lam Research disappointed with its fiscal third-quarter report. The Fremont, Calif.-based company earned an adjusted $7.40 a share on sales of $4.06 billion in the March quarter. Analysts had expected Lam earnings of $7.52 a share on sales of $4.25 billion, FactSet said. On a year-over-year basis, Lam earnings dropped 1% while sales rose 5%.
In a news release, Chief Executive Tim Archer blamed "an extraordinarily difficult supply environment" that prevented Lam from shipping as many wafer fabrication systems as expected.
For the June quarter, Lam expects to earn an adjusted $7.25 a share on sales of $4.2 billion. However, Wall Street was looking for earnings of $8.23 a share on sales of $4.45 billion.
LRCX stock dropped 3.1% to 466.48 in after-hours trading Wednesday. During the regular session, ahead of the Lam earnings report, LRCX stock rose 0.5% to close at 481.45.
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.
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