ASML Beats On Q2 Earnings, Issues Robust Q3, FY21 Outlook, Launches Share Repurchase Program

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ASML Holding NV (ASMLreported second-quarter FY21 net sales growth of 20% year-on-year to €4.0 billion within the company's guidance and missing the analyst consensus by €120 million.

The net bookings were €8.3 billion, including €4.9 billion from EUV systems, bringing the total backlog to €17.5 billion.

The gross margin was 50.9% exceeded the company's guidance mainly due to higher revenue in software upgrades as customers want to increase capacity quickly and one-off revenue accounting releases.

It reported a net income of €1.04 billion. The EPS of €2.52 beat the analyst consensus by €0.03. It held €5.19 billion in cash and equivalents.

The demand continues to be high across all market segments, CEO Peter Wennink said. The product portfolio reflects the market's focus on increasing capacity to support the build-up of the digital infrastructure. The long-term demand caters to advanced nodes, legacy, and mature nodes in Logic and Memory.

Outlook: ASML sees Q3 2021 net sales between €5.2 billion - €5.4 billion and a gross margin between 51% - 52%.

It announced a new share buyback program of up to €9 billion through Dec. 31, 2023. It sees a net sales growth of around 35% in 2021 Y/Y, with a gross margin between 51% - 52%.

Price action: ASML shares traded higher by 3.50% at $707.97 in the premarket session on the last check Wednesday.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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