ASML beat Wall Street's sales and earnings targets for Q1.
The company also raised its full-year sales guidance.
Some investors were hoping that the company would deliver an even more explosive Q1 report.
ASML (NASDAQ: ASML) stock is heading lower in Wednesday's trading following the company's recent quarterly release. The semiconductor-equipment specialist's share price was up 4.5% as of 11:30 a.m. ET.
ASML published its first-quarter results before the market opened this morning and reported sales and earnings for the period that exceeded Wall Street's targets. The company also raised its full-year performance outlook, but that hasn't been enough to stop a pullback for the stock.
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ASML recorded earnings of 7.15 euros per share on sales of 8.77 billion euros. The performance topped the average Wall Street analyst estimates, which had called for earnings of 6.61 euros per share on revenue of 8.66 billion euros. The company's revenue was up 13.3% year over year in the quarter, and earnings per share were up 2.8% compared to the prior-year period. Along with the Q1 report, the company said that it will be paying a total dividend of 7.50 euros per share for 2025, with a final payment of 2.70 euros per share of that total amount still yet to be distributed.
With its Q1 report, ASML said that it was raising its full-year sales outlook for this year to between 36 billion euros and 40 billion euros -- up from its previous guidance for sales between 34 billion euros and 39 billion euros. The company also reiterated its target for a gross margin between 51% and 53%.
ASML stock is falling today despite the company delivering a strong, beat-and-raise quarter -- a dynamic that reflects the high expectations surrounding the company and its stock. On the other hand, demand in the semiconductor industry continues to look very strong -- and ASML continues to be the only provider of extreme-ultraviolet-lithography (EUV) machines used to fabricate today's most advanced chips.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool has a disclosure policy.