ASM International shares rise amid upbeat Q3 results, outlook

ASM International shares are sharply higher Thursday, after the Dutch chipmaker reported strong third quarter results. The tech firm also shared a positive outlook which helped encourage investment into the stock.

By 1410 BST, ASM International shares were 10.34% higher at €41.92. The stock has been trending broadly lower in recent weeks.

ASM International Q3 earnings

ASM International’s third quarter earnings report showed strong results for the semi-conductor manufacturer.

The chipmaker received new orders worth €258 million, the highest level on record for the tech firm. That’s some 47% higher than new orders placed in the second quarter and a 61% increase on the same period a year earlier.

Net sales totalled €196 million in Q3, a 10% rise compared with the same period a year earlier. And, net earnings edged higher to €39.1 million, up from €37.3 million a Q3 2017.

“Sales were within our guidance of €180-200 million while order intake was well above the €200-230 million that we earlier indicated and was 25% above our former highest level,” said ASM International President and CEO, Chuck del Prado.

“The high order intake is driven by logic, foundry and analog. The gross margin in Q3 remained in the range of low to mid 40's. During the third quarter we returned approximately €380m to our shareholders in the form of share buybacks and a tax efficient capital return,” del Prado added.

Positive outlook

Adding to the welcome good earnings news, the chipmaker said its fourth quarter and full year 2018 outlook was also bright.

ASM International is forecasting:

  • Net sales of €220-250 million in the fourth quarter.
  • Q4 net orders of €240-260 million.
  • Full year 2018 growth of the mid-to high single digits.

While the tech firm said its Q4 outlook “still reflects some uncertainty around the exact timing of individual tools,” overall, ASM International said that if things continue as expected they will likely “to outgrow the wafer fab equipment market in 2018”.

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