Investing.com -- ASML (AS:ASML) posted higher-than-anticipated net profit in the second quarter and lifted its full-year sales guidance as the Dutch semiconductor equipment maker was boosted by solid demand in China.
Net income for the three-month period jumped by 35% compared to the corresponding timeframe last year to €1.9 billion (€1 = $1.1218), topping Refinitiv estimates of €1.82B cited by Reuters. Sales also jumped by 28% to €6.9B, beating expectations of €6.74B.
As a result, Europe's largest tech firm by market value raised its guidance for annual sales growth to 30%, up from its prior forecast of 25%. ASML noted that many businesses in China, which faces export controls on certain advanced chipmaking products, are moving to snap up older equipment.
ASML is a supplier to almost every major chipmaker. The Veldhoven, Netherlands-based group is known in particular for its lithography systems, a type of machine that plays a key role in the semiconductor manufacturing process. One of the machines can cost up to $200 million.
Meanwhile, in a statement, chief executive Peter Wennink said ASML's order back-log stands at "around €38B," giving the company a "good basis" to navigate short-term macro-economic uncertainties.
However, Wennink flagged that "[o]ur customers across different market segments are currently more cautious."
Shares in ASML were slightly higher in mid-day European trading on Wednesday.