Traders are preparing for notable volatility in ASML Holding’s stock following the company’s upcoming third-quarter earnings report scheduled for Wednesday. Options pricing indicates that ASML’s stock could swing by approximately 7.65% in either direction. This anticipated movement is significantly higher than the semiconductor leader’s historical average post-earnings volatility of 3.59%.
ASML’s Positive Year-to-Date Performance
ASML stock has risen nearly 44% so far this year. The surge is attributed to optimism surrounding high-NA EUV systems and consistent demand from major foundries like TSMC and Intel. Nonetheless, traders are hedging their positions due to growing geopolitical tensions, export restrictions, and prevailing macroeconomic uncertainties.
Wall Street Forecasts
Analysts expect ASML to report earnings of $6.36 per share, marking a 10.4% increase compared to the same quarter last year. Additionally, revenues are projected to reach $9.02 billion, up from $8.20 billion in the prior year.
ASML’s Earnings History
The company has established a strong track record of exceeding earnings expectations. Regardless of the earnings results, the options market is indicating that traders anticipate considerable volatility.
Investment Sentiment Towards ASML
- Rating: Moderate Buy consensus on TipRanks
- Seven analyst ratings are classified as Buy
- Four Hold ratings
- Average price target: $975.62, suggesting a downside risk of 1.4% from current levels
Investors will be keenly interested in ASML’s guidance and insights related to global demand, supply chain issues, and geopolitical risks. As the earnings date approaches, the company’s strategies and outlook will be closely monitored.
