ASML chip shortages exceed analysts’ third-quarter profit estimates

Texas News Today

FILE PHOTO: The ASML Holding logo is seen at its headquarters in Eindhoven, Netherlands on January 23, 2019. REUTERS / Eva Plevier

October 20, 2021

Toby Sterling

Amsterdam (Reuters) – ASML Holding NV, a major supplier of computer chip makers, reported slightly higher-than-expected quarterly net income of €1.74 billion ($2 billion) on Wednesday amid strong demand for products and a global shortage of semiconductors. was recorded.

Analysts forecast net income to be €1.6 billion for the third quarter ended September 30, according to Refinitiv data.

Revenue was €5.24 billion. In the third quarter of 2020, ASML reported a net profit of €1.1 billion against revenue of €3.96 billion.

“Demand remains high,” CEO Peter Weinink said in a statement.

According to Weinink, digital transformation and chip shortages have increased the need for more capacity to meet current and anticipated future demand for both logic and memory chips.

ASML dominates the market for lithography systems, which cost up to €150 million per unit and use focused rays to aid in the manufacturing of semiconductor circuits.

The company forecast fourth-quarter sales of €4.9-5.2 billion on Wednesday with gross profit of 51%-52%. Wennink reiterated its year-long target of 35% sales growth.

In a meeting with investors in September, the company said it was benefiting from a “megatrend” of the electronics industry, raising its long-term forecast and achieving full-year earnings of €2.4–30 billion ($28 billion–$35 billion). Getting sales. . dollar is expected). By 2025, gross profit was up to 55%.

The company is expanding its capabilities as semiconductor makers expand their capabilities to address global chip shortages. Major customers include all major chip makers such as TSMC, Samsung and Intel.

ASML’s stock is Europe’s largest technology company, reflecting a strong outlook for a market capitalization of approximately €280 billion.

Shares closed at €683 in Amsterdam on Tuesday, a 72% increase from the beginning of the year, outperforming the sector.

($ 1 = 0.8585 euros)

(Reporting by Toby Sterling; Editing by Jacqueline Wong and Subhranshu Sahu)

ASML chip shortages exceed analysts’ third-quarter profit estimates

Source link ASML chip shortage exceeds analysts’ third-quarter profit estimates

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