ASML's Latest Earnings Reveal: A Lucrative Quarter Amid Rising Chip Demand

ASML Holding NV (NASDAQ: ASML) reported a fiscal fourth-quarter 2023 net sales of €7.2 billion, up 12.5% year-on-year. In USD, sales of $7.79 billion beat the consensus of $7.53 billion.

The fourth quarter net bookings were €9.19 billion versus €6.32 billion a year ago. Out of the quarterly net bookings, €5.6 billion is EUV.

The gross margin remained flattish at 51.4%. GAAP EPS was €5.20 in the fourth quarter. In USD terms, $5.61 beat the street view of $5.27.

ASML held €7.01 billion in cash and equivalents as of the fourth quarter.

Dividends: An interim dividend of €1.45 per share will be payable on February 14, 2024. ASML looks to declare a total dividend for the year 2023 of €6.10 per share, up by 5.2% year-on-year.

Outlook: ASML expects fiscal first quarter 2024 net sales of €5.0 billion-€5.5 billion versus consensus of $6.84 billion and a gross margin of 48%-49%.

ASML maintained its conservative view for the year and expects 2024 revenue to be similar to 2023. It also expects 2024 to be an important year to prepare for the significant growth that it expects for 2025.

In late 2023, ASML started shipping significant parts of the first of its newest chipmaking machines to Intel Corp INTC, Bloomberg reports.

ASML also gained from robust demand from China in 2023 as chipmakers rushed to get lithography machines ahead of Dutch export sanctions on the country. 

China accounted for 39% of ASML's sales in the fourth quarter and became its largest market in 2023. China accounted for only 8% from January to March.

 ASML expects up to 15% of China sales this year to be affected by the new export control measures.

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

Price Action: ASML shares traded higher by 5.21% at $818.97 premarket Wednesday.