ASML Q1 Results Surge, Bookings Down; Backs FY23 View; Stock Dips

(RTTNews) - Dutch semiconductor equipment maker ASML Holding N.V. reported Wednesday significantly higher profit in its first quarter mainly driven by strong net sales with increased sales of lithography systems. Further, the company lifted dividend, and said it sees sequentially higher net sales in the second quarter. ASML also maintained its fiscal 2023 sales growth view. In the early morning trading in Amsterdam, ASML shares were losing around 3 percent.

According to the company, the strong results in the quarter mainly reflected higher than expected Extreme Ultraviolet or EUV and Deep Ultraviolet or DUV lithography revenue from faster installation and earlier acceptance of systems.

ASML President and Chief Executive Officer Peter Wennink said, "We continue to see mixed signals on demand from the different end-market segments.... The overall demand still exceeds our capacity for this year and we currently have a backlog of over €38.9 billion."

Looking ahead for the second quarter, ASML expects net sales between 6.5 billion euros and 7.0 billion euros and a gross margin between 50 percent and 51 percent.

For 2023, ASML expects continued strong growth with a net sales increase of over 25 percent and a slight improvement in gross margin, relative to 2022.

ASML said it intends to declare a total dividend for the year 2022 of 5.80 euros per ordinary share, which is a 5.5 percent increase compared to 2021. This leads to a final dividend proposal to the Annual General Meeting of 1.69 euros per ordinary share.

For the first quarter, net income climbed to 1.96 billion euros from last year's 695.3 million euros. Earnings per share were 4.95 euros, up from 1.73 euros a year ago.

Gross margin was 50.6 percent, up from 49 percent last year. Income from operations margin grew to 32.7 percent from 22.2 percent in the prior year.

Total net sales for the quarter surged to 6.75 billion euros from prior year's 3.53 billion euros.

Net system sales climbed to 5.34 billion euros from prior year's 2.29 billion euros. Sales of lithography systems were 100 units in the quarter, up from 62 units last year.

Net service and field option sales were 1.40 billion euros, up from 1.25 billion euros a year earlier.

Quarterly net bookings in the first quarter were 3.8 billion euros, sharply lower than last year's 6.98 billion euros.

In Amsterdam, ASML shares were trading at 570.10 euros, down 3.14 percent.

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