Semiconductor equipment maker ASML on Wednesday beat analyst estimates for the second quarter but missed with its guidance for the current period. Still, ASML stock rose after the report.
The Netherlands-based company earned the equivalent of $3.77 a share on sales of $5.79 billion in the June quarter. Analysts polled by FactSet expected ASML earnings of $3.61 a share on sales of $5.56 billion. In the year-earlier period, ASML earned $2.97 a share on sales of $4.74 billion. ASML reports financial results in euros.
For the current quarter, ASML forecast revenue of $5.38 billion, based on the midpoint of its outlook. Wall Street was modeling $6.78 billion.
Also, ASML lowered its full-year sales growth target to about 10%, in line with analyst estimates. It previously forecast about 20% revenue growth for 2022.
ASML Stock Wavers On Guidance Miss
"This growth is lower than previously guided as a result of an increase in the number of fast shipments expected in the remainder of 2022, the revenue for which will be delayed into 2023 at an amount of around €2.8 billion ($2.86 billion)," Chief Executive Peter Wennink said in a news release.
ASML's fast shipment process skips some product testing in its factory. Final testing and formal acceptance then take place at the customer site. This leads to a deferral of revenue recognition for those shipments until formal customer acceptance, but it provides customers with earlier access to wafer output capacity.
The Dutch company makes advanced lithography equipment for etching tiny circuits onto semiconductors.
On the stock market today, ASML stock rose 3.2% to close at 514.42.
Wennink said demand for its systems remains "very strong, as reflected by record net bookings in the second quarter."
'Messy Guidance' But Outlook Strong
Evercore ISI analyst C.J. Muse maintained his outperform rating on ASML stock, despite the company's "messy guidance." The chip gear maker appears fully booked through 2023, he said.
CFRA Research analyst Jun Zhang Tan reiterated his strong buy rating on ASML stock.
"Despite some slowdown in consumer-related products, ASML has not seen any demand reduction for its systems," he said. "Bookings were surprisingly strong."
ASML stock ranks No. 17 out of 29 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 48 out of 99.
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