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ASML Holding (ASML) to Post Q2 Earnings: What's in the Cards?

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ASML Holding N.V. (ASML - Free Report) is slated to report second-quarter 2021 results on Jul 21.

For the second quarter, the company expects revenues between €4.0 billion and €4.1 billion.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.89 per share, which has been stable over the past 30 days. The figure indicates growth of 46.7% from the year-ago quarter’s reported number.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 19.15%, on average.

Factors to Consider

The impacts of ASML Holding’s portfolio strength, growing investments, expanding position in the memory market and increasing new design wins are expected to get reflected in the second-quarter results.

Prospects around next-generation technology development, capacity additions at leading-edge nodes, and increasing competitive dynamics and investments in Extreme Ultraviolet (“EUV”) infrastructure are likely to have benefited the company’s performance across foundry and logic in the quarter under review.

ASML Holding is expected to have benefited from the improving demand for DRAM. Memory revenues are expected to have increased in the quarter to be reported, driven by healthy demand in data centers, with improving demand for consumer electronics.

ASML Holding N.V. Price and EPS Surprise

 

ASML Holding N.V. Price and EPS Surprise

ASML Holding N.V. price-eps-surprise | ASML Holding N.V. Quote

The strengthening memory market, especially DRAM, and solid momentum in logic,owing to transitions to 5G as well as AI are likely to have driven the company’s EUV system revenues in the soon-to-be-reported quarter.

Strong demand for advanced nodes in support of the build up of the digital infrastructure, which includes growth drivers such as 5G, AI and high-performance computing solutions, is expected to have acted as a tailwind by boosting the demand for the company’s products.

The application business of the company is expected to have continued to gain from the rising need for scanners in EUV and Deep Ultraviolet systems in the quarter under review.

The growing momentum of YieldStar 385 among customers is anticipated to have been a positive.

The service business is expected to have performed well in the second quarter, driven by the increasing contribution from EUV service revenues.

However, uncertainties related to the macro environment — including the economic impact of the pandemic and geopolitical developments—are expected to have been headwinds for the company in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for ASML Holding this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ASML Holding currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

TE Connectivity Ltd. (TEL - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank of 2 at present.You can see the complete list of today’s Zacks #1 Rank stocks here.

Garmin Ltd. (GRMN - Free Report) has an Earnings ESP of +4.54% and a Zacks Rank of 2, currently.

Carrier Global Corporation (CARR - Free Report) has an Earnings ESP of +6.44% and a Zacks Rank of 2 at present.