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ASML Holding (ASML) to Post Q2 Earnings: What's in the Cards?

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ASML Holding N.V. (ASML - Free Report) is slated to report second-quarter 2023 results on Jul 19.

For the second quarter, ASML expects revenues between €6.5 billion and €7 billion.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $4.98 per share, indicating 32.1% growth from the year-ago quarter’s reported number.

Notably, the figure has been stable 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

ASML Holding’s second-quarter results are expected to reflect its portfolio strength, growing investments, expanding position in the memory market and increasing design wins.

Demand for ASML Holding’s products is likely to have strengthened owing to the increasing adoption of advanced nodes for supporting the build-up of the digital infrastructure, including growth drivers such as 5G, AI and high-performance computing solutions.

Additionally, prospects around next-generation technology development, capacity additions at leading-edge nodes, increasing competitive dynamics, as well as investments in Extreme Ultraviolet (EUV) infrastructure are likely to have benefited ASML’s performance across foundry and logic in the quarter under review.

The expanding memory market, especially DRAM and solid momentum in logic owing to transitions to 5G and AI are likely to have driven ASML’s EUV system revenues in the soon-to-be-reported quarter.

Moreover, the service business of ASML is expected to have performed well in the second quarter, fueled by the increasing contribution from EUV service revenues.

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

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

Also, sluggish demand in the consumer end-market, along with weakness in Installed Base Management, might have been concerns.

What Our Model Says

Our proven model does not conclusively predict 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.

ASML Holding has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 ASML carries a Zacks Rank #3 at present.

Stocks to Consider

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

Shopify (SHOP - Free Report) has an Earnings ESP of +86.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.

Carrier Global (CARR - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.

Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year fiscal period’s reported figure.

Itron (ITRI - Free Report) has an Earnings ESP of +12.9% and a Zacks Rank #2 at present.

Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.

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

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