Semi equipment stocks move higher after Dutch peer ASML reports results

Shares of companies in the semiconductor equipment space are getting a boost on Wednesday after Dutch peer ASML Holding (ASML) reported quarterly sales that jumped to EUR2.74B from EUR2.285B in the previous quarter. ASML reported Q2 earnings per share of EUR1.37 versus EUR1.26 in Q1. CEO COMMENTARY: "Our second quarter sales were above expectations including higher than forecasted EUV sales. Gross margin was slightly above our guidance, reflecting the strength of our DUV and Applications business and progress in EUV profitability. After an excellent first half of 2018, we expect the second half to be stronger, with improved profitability and continued growth from Q3 to Q4," said ASML President and Chief Executive Officer Peter Wennink. LONGER-TERM SECULAR TAILWINDS: Earlier this month, JPMorgan analyst Sandeep Deshpande advised that the recent correction in shares of ASML were a buying opportunity. While cyclical memory headwinds impact short-term sentiment, longer-term secular tailwinds dominate, Deshpande told investors in a research note on July 3. At the time, the analyst pointed out that ASML's stock had re-rated through previous memory cycles as management provided long-term guidance. As such, the analyst anticipated the company's November analyst day as the next catalyst. Deshpande kept an Overweight rating on ASML with a price target of EUR180. PRICE ACTION: Shares of ASML are up 6.5% to $217.66 in afternoon trading. PEERS FOLLOW HIGHER: Shares of other companies in the semi equipment space are all higher including KLA-Tencor (KLAC), Applied Materials (AMAT), Lam Research (LRCX) and Kulicke and Soffa Industries (KLIC).