ASML Revenue Tops Expectations. It Sees a Chip Market Rebound.

Some chip makers are actually chopping again on spending in an trade downturn, with semiconductor maker
Texas Devices
(TXN) saying on Tuesday that it was dealing with softening demand and better cancellations for orders. 

“We proceed to see uncertainty available in the market brought on by inflation, rising rates of interest, threat of recession, and geopolitical developments associated to export controls. Nevertheless, our prospects point out that they count on the market to rebound within the second half of the yr,” ASML CEO Peter Wennink. 

“Contemplating our order lead instances and the strategic nature of lithography investments, demand for our methods due to this fact stays sturdy,” Wennink stated. 

ASML’s internet revenue for the ultimate quarter of 2022 was €1.8 billion ($1.96 billion), beating a consensus forecast of €1.71 billion, in keeping with
FactSet.
Internet gross sales for the quarter had been €6.4 billion in contrast with €4.99 billion a yr earlier, with a gross margin of 51.5%.

ASML stated it expects first-quarter internet gross sales between €6.1 billion and €6.5 billion. For 2023 total it forecast a internet gross sales improve of greater than 25% and a slight enchancment in gross margin relative to 2022. 

Analysts at UBS wrote in a analysis word that the steering for gross sales progress was forward of consensus expectations of round 21% for this yr and that the outcomes had been “reassuring.”

American depositary receipts (ADRs) of ASML had been down 0.8% in premarket buying and selling, after a powerful run as much as the outcomes that had despatched the ADRs up 23% this yr to this point.

ASML stated it might pay a complete dividend of €5.80 per share for the yr, up 5.5% from 2021.

Write to Adam Clark at [email protected]