ASML (ASML) shares ended the last trading session 6.3% higher at $655.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.4% gain over the past four weeks.
ASML Holding extended its rally, driven by the better than expected first-quarter 2021 results. Further, strengthening end-market demand environment-led year-over-year growth in the top line is instilling investor optimism in the stock. Moreover, growing Installed Base business of the company on the back of increasing adoption of software upgrades remains a positive.
Additionally, the company’s positive outlook for revenues in 2021 backed by rising need for advanced and mature nodes in Logic and Memory owing to growing proliferation of 5G, AI and high-performance computing solutions, remains noteworthy.
Price and Consensus
This equipment supplier to semiconductor makers is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +199%. Revenues are expected to be $4.84 billion, up 79.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ASML, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ASML going forward to see if this recent jump can turn into more strength down the road.