ASML Q3 Earnings Are Coming. What to Expect

Tiger Newspress2022-10-13

ASML (NASDAQ:ASML) will be posting its quarterly earnings results before the market opens on Wednesday, October 19th. Analysts expect ASML to post revenue of €5.317B, adjusted net profit of €1.378B, and adjusted EPS of €3.47 for the quarter, according to Bloomberg consensus.

ASML is the dominant maker of lithography systems, and its machines are used to create the circuitry of most computer chips. ASML's biggest customers are TSMC, Samsung and Intel, though memory chip makers SK Hynix and Micron and all major chipmakers are also customers.

Previous quarter review

ASML last released its earnings results on Wednesday, July 20th. The semiconductor company reported $3.77 EPS for the quarter, beating the consensus estimate of $3.51 by $0.26. The firm had revenue of $5.79 billion for the quarter, compared to analysts' expectations of $5.29 billion. ASML had a net margin of 31.36% and a return on equity of 64.93%. On average, analysts expect ASML to post $14 EPS for the current fiscal year and $21 EPS for the next fiscal year.

Focus of the Third quarter

ASML provided flattish guidance as ASML’s management stated that it expects sales in Q3 to be in a similar guided range as Q2 as increasing supply constraints drive more fast shipments and delay revenue recognition to subsequent quarters.

ASML highlighted in a recent September conference that it had yet to see demand destruction from its customers for orders through FY23.

Furthermore, given the supply chain disruption, it has been unable to fulfill all its orders. As a result, its revenue growth has already faced these headwinds as it looks to normalize its supply chain.

Analyst view

Several equities analysts have recently weighed in on ASML shares.

JPMorgan Chase & Co. reduced their price objective on shares of ASML from $925.00 to $794.00 in a research report on Thursday, July 21st.

Credit Suisse Group decreased their price target on shares of ASML from €960.00 ($979.59) to €920.00 ($938.78) and set an "outperform" rating on the stock in a research report on Thursday, July 21st.

Deutsche Bank Aktiengesellschaft upped their price target on ASML from €475.00 ($484.69) to €525.00 ($535.71) and gave the company a "hold" rating in a report on Thursday, July 21st.

Wells Fargo & Company reduced their price objective on ASML from $600.00 to $510.00 and set an "overweight" rating for the company in a research note on Monday.

Finally, Argus started coverage on ASML in a research report on Wednesday, June 29th. They set a "buy" rating and a $590.00 target price on the stock.

One investment analyst has rated the stock with a sell rating, three have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company.

Based on data from MarketBeat.com, ASML currently has an average rating of "Moderate Buy" and an average target price of $699.10.

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