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What's in the Offing for ASML Holding's (ASML) Q2 Earnings?

·4 min read

ASML Holding N.V. ASML is slated to report second-quarter 2022 results on Jul 20.

For the second quarter, the company expects revenues between €5.1 billion and €5.3 billion. The Zacks Consensus Estimate for the same is pegged at $5.3 billion, indicating growth of 9.2% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $3.52 per share, which has been revised 0.3% downward over the past 30 days. The figure indicates growth of 15.8% from the year-ago quarter’s reported number.

The company surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 29.6%, on average.

ASML Holding N.V. Price and EPS Surprise

 

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 second-quarter results.

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, with 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 systems (DUV) 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 second quarter, driven by the increasing contribution from EUV service revenues.

However, uncertainties related to the macro environment — including the economic impact of the pandemic 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 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ASML Holding currently has a Zacks Rank #3 and an Earnings ESP of -0.38%.

Stocks to Consider

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

KLA Corporation KLAC has an Earnings ESP of +0.24% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

KLA is scheduled to release fourth-quarter fiscal 2022 results on Jul 28. The Zacks Consensus Estimate for KLAC’s earnings is pegged at $5.46 per share, suggesting an increase of 23.2% from the prior year’s reported figure.

Advanced Micro Devices AMD has an Earnings ESP of +1.34% and a Zacks Rank #3 at present.

Advanced Micro Devices is set to report second-quarter 2022 results on Jul 26. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, which suggests an increase of 63.5% from the prior year’s reported figure.

STMicroelectronics STM has an Earnings ESP of +0.82% and is Zacks #3 Ranked at present.

STMicroelectronics is expected to release second-quarter 2022 results on Jul 28. The Zacks Consensus Estimate for STM’s earnings is pegged at 81 cents per share, which suggests an increase of 84.1% from the prior year’s reported figure.

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


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