ASML Posts Mixed Q3 Earnings On Sluggish Market Fundamentals, Expects FY24 To Be A Transition Year

ASML Holding NV ASML reported a Q3 FY23 net sales of €6.67 billion. In USD terms, sales of $7.26 billion missed the consensus of $8.53 billion.

The Q3 net bookings were €2.60 billion versus €8.92 billion a year ago.

The gross margin increased by 10 bps Y/Y to 51.9% led by DUV product mix and some one-off costs impacts.

GAAP EPS was €4.81 in Q3. In USD terms, $5.24 beat the street view of $5.00.

ASML held €4.98 billion in cash and equivalents as of Q3 FY23.

Buybacks & Dividends: An interim dividend of €1.45 per ordinary share will be payable on November 10.

In Q3, ASML repurchased around €100 million worth of shares under the 2022-2025 share buyback program.

"The semiconductor industry is currently working through the bottom of the cycle and our customers expect the inflection point to be visible by the end of this year. Customers continue to be uncertain about the shape of the demand recovery in the industry. We therefore expect 2024 to be a transition year. Based on our current perspective, we take a more conservative view and expect a revenue number similar to 2023. But we also look at 2024 as an important year to prepare for significant growth that we expect for 2025," said Peter Wennink, President and Chief Executive Officer.

Outlook: ASML expects Q4 net sales of €6.7 billion-€7.1 billion and a gross margin of 50%-51%.

ASML reaffirmed 2023 net sales growth outlook of 30% Y/Y and a slight improvement in gross margin.

Also Read: ASML Stock Drops As Key Supplier TSMC Reportedly Postpone Deliveries Amidst Industry Demand Concerns

Price Action: ASML shares closed higher by 0.80% at $608.63 on Tuesday.

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