ASML Shares Decline as Earnings Forecast Disappoints Investors

ASML NV, Europe’s largest semiconductor-equipment supplier, gave a revenue and earnings forecast that was lower than analysts expected, sending the shares down as much as 4.1 percent.

The company expects to triple earnings per share and reach about 10 billion euros ($12 billion) in annual revenue by 2020, ASML said in a statement ahead of a presentation to investors today. The company reported 5.2 billion euros in sales in 2013.

“The market was probably looking for ASML to reach the disclosed financial targets by 2018,” Robin van den Broek, an analyst at ING Groep NV, said in a note to clients.

The switchover to extreme-ultraviolet, or EUV, lithography is progressing more slowly than the industry previously forecast. The technology will enable customers to produce smaller chips while increasing capacity and speed. ASML said it expects EUV systems to enable cost-effective manufacturing of logic and memory chips starting in 2016 or 2017.

For 2015 the company said it received two orders for its NXE:3350B EUV system from Taiwan Semiconductor Manufacturing Co. The company will also upgrade two NXE:3300B systems that it already delivered to TSMC, to the performance levels of the NXE:3350B machines.

Deep-ultraviolet immersion systems will still be used for chip production for the foreseeable future, ASML said.

ASML shares traded 2.2 percent lower at 83.38 euros at 9:59 a.m. in Amsterdam. They have gained 23 percent this year.

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