ASML shares plunge on erroneously reported Q3 results

Shares of Dutch chipmaker ASML (NASDAQ:ASML) experienced a steep 17% decline on Tuesday, with Bloomberg commenting that it was the biggest intraday drop since 2008. This decline follows the release of the third quarter, which was far from consensus estimates, later admitted due to a technical error.

ASML stated that due to a technical error, third quarter results information was incorrectly posted on the website. For transparency reasons, ASML has accelerated the publication of its full Q3 results and the full content of the Q3 results is available on its website.

Now ASML reported actual financial results for the quarter via its website, with net sales at 7.5 billion, below the lowest analyst forecast of 7.6 billion. The company's gross margin of 50.8% indicates efficient operations and healthy profitability. Furthermore, earnings per share (EPS) reached 5.28, surpassing the lowest forecast EPS of 5.07.

US and Dutch export restrictions on shipments to China, an important market for ASML, continue to pose a problem. However, we must admit that ASML continues to be a valuable supplier to the global semiconductor industry. The company's outlook will continue to have a major impact on changing the mood and direction of the entire industry.

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This article first appeared on GuruFocus.