ASML profit above forecast indicators revised up
2023.01.25 05:30
ASML profit above forecast indicators revised up
By Kristina Sobol
Budrigannews.com – Europe’s largest technology company, ASML Holding NV, beat estimates for fourth-quarter earnings on Wednesday and predicted sales of more than 25% in 2023, despite the possibility of new restrictions on its exports to China.
As top customers TSMC and Samsung (KS:), the manufacturer of equipment for the production of semiconductors has struggled to meet demand. likewise Intel (NASDAQ: are all involved in significant expansions.
At the end of the year, it said that its order backlog had increased to a record 40 billion euros ($43.62 billion).
According to analysts at Credit Suisse, the recent rises in the company’s share price, which were up 55% from their lows in October and 22% in January, may cause the market to “take the earnings negatively.”
In a note, they stated, “However, ASML’s structural prospects remain unchanged.”
In Amsterdam, shares ended at 615.70 euros.
Customers anticipate conditions improving toward the end of the year and China’s economy recovering after the end of COVID-19 curbs, according to CEO Peter Wennink. However, the economic outlook for 2023 is clouded by concerns regarding the economy and growing semiconductor inventories.
He stated, “That means that the demand is still higher than what we can produce.”
The figures are released a week after U.S. President Joe Biden and Dutch Prime Minister Mark Rutte discussed the possibility of imposing new export restrictions on some of ASML’s sales to Chinese customers due to security concerns.
Despite the fact that the United States of America imposed new export restrictions on its own businesses in October, Wennink currently stated that “nothing has changed” regarding ASML’s exports to China.
Wennink stated, “We can still ship DUV (older) tools” to mainland China.
After Taiwan and South Korea, China is the third largest market for the business.
The company with its headquarters in Veldhoven, Netherlands, reported revenue of 6.43 billion euros and a net profit of 1.82 billion euros for the fourth quarter, up from 1.77 billion euros the year before.
According to data from Refinitiv Eikon, that surpassed analyst projections for a net profit of 1.70 billion euros on sales of 6.38 billion.
