Naweed & Kamran Research
Updated on Oct 5, 2022
- ASML reported €5.4 billion in net sales, €1.4 billion net income and Gross margin of 49.1% in Q2 and expects 2022 sales growth to be around 10%.
- ASML received record quarterly net bookings of €8.5 billion in Q2 and is trying to increase capacity to meet current and future customer demand.
- ASML plans to ship a record number of systems in 2022, but the company is facing headwinds in terms of supply chain constraints leading to delayed system starts. This has forced the company to increase the number of fast shipments in Q3 so that its customers can get the systems in production as quickly as possible.
- As more fast shipments are planned in the third quarter, the amount of revenue delayed to subsequent quarters will increase. ASML expects Net delayed revenue recognition of around €1.1 billion into subsequent quarters due to fast shipments.
- For Q3, ASML expects Net sales between €5.1 billion and €5.4 billion, and Gross margin between 49% and 50%
- The company is committed to returning significant amounts of cash to its shareholders by increasing dividends and share buybacks.
- ASML is the only company that makes the lithography machines that can make the most advanced chips. Therefore, it has very good growth prospects. The chips that are on Apple’s latest smartphone have been made with ASML’s machine.
- Megatrends in the electronics industry are expected to continue to fuel growth across the semiconductor market. Growth in semiconductor end markets and increasing lithography intensity are driving demand for ASML’s products and services
- ASML expects to reach annual revenue between approximately €24 billion and €30 billion in 2025, with a gross margin between approximately 54% and 56%…..