ASML Q2 Results Climb, Cuts FY22 Sales Growth View; Stock Down

Shares of ASML Holding N.V. were losing around 2 percent in the morning trading in Amsterdam as well as in pre-market activity on Nasdaq after the Dutch semiconductor equipment maker trimmed its revenue growth forecast for fiscal 2022. This was despite reporting higher profit and sales in its second quarter with strong demand. Further, net bookings of lithography systems in unit declined, but its value increased.

According to the company, an increase in the number of fast shipments is expected in the remainder of 2022 amid supply chain constraints. This would result in delayed revenue recognition into 2023.

ASML President and Chief Executive Officer Peter Wennink said, “Some customers are indicating signs of slowing demand in certain consumer-driven market segments, yet we still see strong demand for our systems, driven by global megatrends in automotive, high-performance computing, and green energy transition.”

ooking ahead for the third quarter, ASML expects net sales to be between 5.1 billion euros and 5.4 billion euros with a gross margin between 49 percent and 50 percent.

In the prior year’s third quarter, total net sales were 5.24 billion euros with a gross margin of 51.7 percent.

For the full year 2022, the company now expects a sales growth of around 10 percent. The company said in April that it expected annual revenue growth of around 20 percent.

The value of fast shipments in 2022 leading to delayed revenue recognition into 2023 is expected to increase to around 2.8 billion euros from around 1 billion euros.

Further, the company expects the full-year 2022 gross margin to be between 49 percent and 50 percent with the combination of delayed revenue recognition, the extra costs related to the planned increase in output capacity and certain inflationary trends.

ASML further said it has revised its dividend policy to provide for dividend payments on a quarterly basis, starting with an interim dividend of 1.37 euros per ordinary share that will be made payable on August 12.

For the second quarter, net income rose to 1.41 billion euros or 3.54 euros per share from 1.04 billion euros or 2.52 euros per share in the same quarter last year.

Income from operations was 1.65 billion euros, up from 1.24 billion euros. Gross margin was 49.1 percent, lower than 50.9 percent a year ago.

Total net sales for the second quarter grew to 5.43 billion euros from 4.02 billion euros last year.

Net system sales climbed to 4.14 billion euros from 2.95 billion euros last year. Sales of lithography systems grew to 91 units from prior year’s 72 units.

Net bookings of lithography systems in the second quarter were 139 units, down from 167 units last year. However, value of booked systems were 8.5 billion euros, higher than last year’s 8.27 billion euros.

In Amsterdam, ASML shares were trading at 476.65 euros, down 1.68 percent.

In pre-market activity on Nasdaq, the shares were losing around 2 percent to trade at $488.54

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