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What's in the Offing for ASML Holding's (ASML) Q4 Earnings?

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ASML Holding N.V. (ASML - Free Report) is slated to report fourth-quarter 2022 results on Jan 25.

For the fourth quarter, the company expects revenues between €6.1 billion and €6.6 billion.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $4.62 per share, which indicates a decline of 7.8% from the year-ago quarter’s reported number.

Notably, the figure has been revised 3.6% upward over the past 30 days.

ASML Holding N.V. Price and EPS Surprise

 

ASML Holding N.V. Price and EPS Surprise

ASML Holding N.V. price-eps-surprise | ASML Holding N.V. Quote

Factors to Consider

The impacts of ASML Holding’s portfolio strength, growing investments, expanding position in the memory market and increasing design wins are expected to get reflected in the fourth-quarter results.

The growing opportunities in the semiconductor end markets, megatrends in the electronics industry and increasing lithography intensity are anticipated to have bolstered the demand for ASML’s products and services.

Prospects around next-generation technology development, capacity additions at leading-edge nodes, and increasing competitive dynamics and investments in Extreme Ultraviolet (“EUV”) infrastructure are anticipated to have benefited the company’s performance across foundry and logic in the quarter under review.

ASML’s Memory revenues are expected to have increased in the quarter to be reported, driven by healthy demand in data centers and improving demand for consumer electronics.

Solid momentum in logic, owing to transitions to 5G and AI, is likely to have driven the company’s EUV system revenues in the soon-to-be-reported quarter.

Strong demand for advanced nodes in support of the build-up of digital infrastructure, which includes growth drivers such as 5G, AI and high-performance computing solutions, is expected to have boosted the demand for the company’s products.

The application business of ASML Holding is expected to have continued to gain from the rising need for scanners in EUV and Deep Ultraviolet (DUV) systems in the quarter under review.

The growing momentum in DUV bookings is anticipated to have been another positive.

The service business is expected to have performed well in the fourth quarter, driven by the increasing contribution from EUV service revenues.

However, uncertainties related to the macro environment, including supply-chain challenges and geopolitical tensions, are expected to have been headwinds for the company in the to-be-reported quarter.

What Our Model Says

Our proven model conclusively predicts an earnings beat for ASML Holding this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ASML Holding has an Earnings ESP of +4.19% and sports a Zacks Rank #1 at present.

Other Stocks to Consider

Here are some other stocks, which, per our model, also have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

MSCI (MSCI - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

MSCI is scheduled to release fourth-quarter 2022 results on Jan 31. The Zacks Consensus Estimate for MSCI’s earnings is pegged at $2.71 per share, suggesting an increase of 7.97% from the prior-year quarter’s reported figure.

Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.

Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3 at present.

Analog Devices is scheduled to release first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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