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My Take on ASML Holding's Earnings

By Jose Najarro – Oct 21, 2021 at 7:00AM

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Supply chain issues are affecting this semiconductor giant.

Today's video focuses on what long-term investors should know about ASML Holding (ASML 0.35%) after the company reported its earnings on Oct. 20. Here are some highlights from the video. 

  1. ASML's net sales were 5.2 billion euros, which was on the lower end of its expectations given in its previous earnings call. For the upcoming quarter, the company expects between 4.9 billion and 5.2 billion euros in sales. During the earnings call, management informed us that some supply chain issues have caused guidance to be a bit weaker than expected.
  2. ASML has a strong buyback program and intends to repurchase 9 billion euros worth of shares. During the third quarter, ASML purchased around 2.4 billion euros of shares. A higher volume of shares has been repurchased in the past few weeks as ASML's stock price has declined. 
  3. On Oct. 19, ASML reached an agreement to sell a non-semiconductor business portion of Berliner Glas. ASML purchased Berliner Glas in 2020 and is trying to divest certain parts and only focusing on the semiconductor aspect of the business. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Oct. 20, 2021. The video was published on Oct. 20, 2021.



Jose Najarro has no position in any of the stocks mentioned. The Motley Fool recommends ASML Holding. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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