Stock Market News

ASML Rises After Flagging Capacity Expansion; Rising Costs Hit 1Q EPS

2022.04.20 11:01

ASML Rises After Flagging Capacity Expansion; Rising Costs Hit 1Q EPS

By Geoffrey Smith 

Investing.com — ASML (NASDAQ:ASML) reported another strong quarter as the global bottleneck in semiconductors led the Dutch-based lithographer to announce plans to increase production capacity for its high-end chipmaking equipment.

ASML, which has an effective monopoly on machinery for making the highest performance silicon chips, said it intends to raise its capacity for both deep ultraviolet (DUV) and extreme ultraviolet machines by 2025, adding that it will provide details in the second half. ASML stock in Amsterdam rose 2.7% in response to the news, making it one of the best performers in the local AEX index.

“We continue to see that the demand for our systems is higher than our current production capacity,” CEO Peter Wennink said in a statement. “In light of the demand and our plans to increase capacity, we expect to revisit our scenarios for 2025 and growth opportunities beyond.”

The boom in demand for semiconductors since the start of the pandemic has left ASML in an enviable position, fielding a rush of orders for new equipment. Net bookings in the first quarter were 6.98 billion euros ($7.55 billion), down fractionally from the previous quarter. The gross margin also fell slightly due to higher input costs but at 49% was in line with the company’s previous guidance.

ASML repeated its full-year guidance of a 20% rise in sales, with the current quarter expected to generate between 5.1 billion and 5.3 billion euros in net sales at an unchanged gross margin of between 49% and 50%. The company expects relatively high research and development costs of 790 million euros for research and development and another 220 million in selling, general and administrative costs.

Those costs, together with delays to the recognition of revenue from some sales, caused net profit to fall to 695 million euros in the quarter, equivalent to 1.73 euros a share.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 94,750.39 0.40%
ethereum
Ethereum (ETH) $ 3,418.35 4.28%
tether
Tether (USDT) $ 0.999287 0.01%
xrp
XRP (XRP) $ 2.26 2.69%
bnb
BNB (BNB) $ 693.24 6.82%
solana
Solana (SOL) $ 189.92 5.33%
dogecoin
Dogecoin (DOGE) $ 0.323906 3.70%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 0.924839 4.73%
staked-ether
Lido Staked Ether (STETH) $ 3,410.85 4.25%
tron
TRON (TRX) $ 0.252302 3.37%
avalanche-2
Avalanche (AVAX) $ 39.04 6.83%
chainlink
Chainlink (LINK) $ 24.50 11.09%
the-open-network
Toncoin (TON) $ 5.59 3.87%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,058.81 4.13%
sui
Sui (SUI) $ 4.71 9.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000022 4.57%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,571.34 0.35%
polkadot
Polkadot (DOT) $ 7.36 7.83%
stellar
Stellar (XLM) $ 0.370078 3.90%
hedera-hashgraph
Hedera (HBAR) $ 0.291383 9.85%
hyperliquid
Hyperliquid (HYPE) $ 28.36 0.75%
weth
WETH (WETH) $ 3,420.11 4.35%
bitcoin-cash
Bitcoin Cash (BCH) $ 460.38 3.38%
leo-token
LEO Token (LEO) $ 9.35 0.49%
uniswap
Uniswap (UNI) $ 14.27 2.93%
litecoin
Litecoin (LTC) $ 106.49 6.96%
pepe
Pepe (PEPE) $ 0.000018 3.52%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,611.29 4.41%
near
NEAR Protocol (NEAR) $ 5.43 7.94%
bitget-token
Bitget Token (BGB) $ 4.29 3.50%
ethena-usde
Ethena USDe (USDE) $ 0.999344 0.01%
aave
Aave (AAVE) $ 383.39 20.68%
aptos
Aptos (APT) $ 9.71 5.29%
usds
USDS (USDS) $ 0.99764 0.22%
internet-computer
Internet Computer (ICP) $ 10.76 8.47%
crypto-com-chain
Cronos (CRO) $ 0.162358 5.42%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.500673 5.83%
ethereum-classic
Ethereum Classic (ETC) $ 27.50 5.80%
mantle
Mantle (MNT) $ 1.21 3.90%
render-token
Render (RENDER) $ 7.63 8.73%
vechain
VeChain (VET) $ 0.048665 6.13%
mantra-dao
MANTRA (OM) $ 3.77 1.90%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.37 9.27%
bittensor
Bittensor (TAO) $ 484.29 7.62%
monero
Monero (XMR) $ 190.85 0.33%
whitebit
WhiteBIT Coin (WBT) $ 24.38 0.08%
dai
Dai (DAI) $ 1.00 0.01%
arbitrum
Arbitrum (ARB) $ 0.799161 7.15%
filecoin
Filecoin (FIL) $ 5.19 7.44%