asml surprises with robust Q3 earnings
Veldhoven, Wednesday, 18 December 2024.
ASML Holding has reported a significant earnings surprise for Q3 2024, with earnings per share (EPS) reaching $5.80. This figure surpassed the market’s consensus estimate by $0.56. The company’s quarterly revenue also exceeded expectations, coming in at $8.21 billion compared to the projected $7.66 billion. This strong performance underscores ASML’s position as a leader in the semiconductor industry and is likely to influence its stock positively. ASML’s earnings growth is projected to continue, with an expected increase of 23.89% in the next year. As the technology sector remains competitive, ASML’s ability to exceed expectations highlights its strategic prowess and market strength. Investors and analysts may view these results as a positive indicator of the company’s future potential.
Market outperformance and stock momentum
ASML’s stock has demonstrated remarkable momentum, gaining 9.1% over the past month [5]. This performance has significantly outpaced both the broader Computer and Technology sector, which rose 3.43%, and the S&P 500’s increase of 1.17% [5]. The company’s current share price of $722.38 reflects investor confidence in its market position [5]. With a price-to-earnings growth (PEG) ratio of 2.1, below the industry average of 3.53, ASML’s valuation metrics suggest potential for continued growth [5].
Forward-looking projections
Market analysts anticipate ASML’s growth trajectory to continue, with the next quarter’s earnings per share projected at $7.19, representing a 28.39% increase year-over-year [5]. Revenue forecasts are equally optimistic, with expectations of $9.76 billion for the upcoming quarter, marking a 25.3% rise from the previous year [5]. The company’s full-year projections indicate earnings of $20.57 per share, while revenue is expected to reach $30.49 billion [5].
Industry positioning and competitive edge
ASML maintains its strong position in the Semiconductor Equipment - Wafer Fabrication industry, which ranks in the top 33% of over 250 industries [5]. The company’s market capitalization stands at €26.52 billion, supported by trailing twelve-month earnings of €550.91 million [4]. ASML’s relatively lower weekly price volatility of 6.1% compared to the industry average of 7.9% suggests stable market performance [4].