This post was originally published on this site
Investing.com – ASML ADRs (NASDAQ:ASML) fell nearly 4% Wednesday as the company’s third-quarter net sales of 5.2 billion euro (around $6 billion) came in at the lower end of its own guidance and below analysts’ estimate.
In more disappointment, the company made net bookings off 6.2 billion euro, lower than second quarter’s 8.3 billion euro. This comes at a time when demand for chips has touched unprecedented levels, which has meant big business for their manufacturers and in turn suppliers of their raw materials and machines.
The Dutch company makes machines used by world’s top companies to produce chips that go into mobile phones, laptops, TVs and cars. It also provides software and services that help those companies mass produce patterns on silicon. For some of the most advanced semiconductors that go into laptops, mobiles and other digital devices, ASML is the world’s only maker of equipment used to produce them.
According to Reuters, ASML dominates the market for lithography systems, machines that cost up to 150 million euros each and that use focused beams of light to help create the circuitry of semiconductors.
Gross margin in the third quarter was 51.7%. The company had guided it to come in between 51% and 52%.
The company told investors in September it was benefiting from “megatrends” in the electronics industry. It said annual revenue could come in between 24 billion euro and 30 billion euro in 2025, with gross margins of up to 56%.
ASML expects net sales of 4.9 billion euro to 5.2 billion euro in the ongoing quarter with a gross margin of 51% to 52%.
“. . .For the full year, we are on track to achieving growth approaching 35%,” President and Chief Executive Officer Peter Wennink said in a note.
Adjusted profit per share was $4.27 and came in ahead of estimates.
