Why Shares of ASML Holding Popped This Week
Shares of ASML Holding (NASDAQ: ASML) popped as much as 18.4% this week, according to data from S&P Global Market Intelligence. The semiconductor equipment company posted a strong earnings report and dismissed any concerns over the U.S. government's new export bans to China. As of the close on Thursday, Oct. 20, shares of ASML are up 15.3% this week.
On Wednesday of this week, ASML released its earnings for the three months ending in September. Revenue was 5.78 billion euros for the period, up from 5.4 billion a year ago, and beat analyst expectations of 5.41 billion euros. Net income was 1.7 billion euros, which also beat analyst forecasts of 1.42 billion for the quarter. These two numbers are the key reason ASML stock jumped after the report, as investors were too pessimistic about the company's prospects this quarter.
Besides these impressive financials, ASML's management gave commentary about the U.S. government's recent export controls on semiconductor equipment to China. ASML will be affected by these new rules, with the company telling all its U.S. personnel to leave the country immediately after the order was announced.
Source Fool.com
