ASML raises outlook for Q3 bookings, shares rise
Wed Sep 6, 2006 5:06am ET
AMSTERDAM, Sept 6 (Reuters) - Dutch chip equipment maker ASML raised its outlook for its third-quarter bookings to 93 new orders from its previous outlook for more than 62, the company said on Wednesday.
ASML shares were up 2.8 percent at 17.45 euros at 0755 GMT after earlier touching 17.51 euros. The DJ Stoxx European tech sector index was down 0.6 percent.
"Today's upgrade in bookings for the third quarter surprised us positively," Marc Kennis at Van Lanschot brokerage said in a note, upgrading the stock from "sell" to "hold".
The company said it expects third-quarter unit orders to be at about the order intake level of the second quarter, when ASML reported 93 new orders.
"As a result, we expect that our 2006 net sales will increase by approximately 40 percent year-on-year," Chief Executive Eric Meurice said in a statement, indicating 2006 net sales of around 3.5 billion euros ($4.5 billion) compared to 2005 net sales of 2.5 billion euros.
ASML said on July 19 that it expected unit bookings in the third quarter to be higher than third-quarter shipments, which were expected to be 62.
"ASML has received significantly more orders than expected for the second quarter in a row. This is largely contrary to the generally expected trend of a slowdown in the second half of the year," analyst Eric de Graaf at Petercam said in a note, raising his price traget to 21 euros from 20.
"We were anticipating 72 new orders to be booked in the third quarter of 2006," he added.
"Third quarter strong order entry underlines ASML's continued market share increase in both the leading edge and volume segments. It is indicative of the industry's fairly sustained need for capacity, as customers are building new fabs for 2007," Meurice said on Wednesday.
ASML is the world's largest maker of semiconductor lithography machines which map out electronic circuits on silicon wafers. It competes with Japan's Nikon Corp and Canon Inc..
ASML's customers include the world's largest chip maker Intel Corp and Taiwan Semiconductor Manufacturing, the world's largest contract chip maker. |
