ASML Holding NV Earnings Call $ASML Q1 2022 10Q

[NYSE: ASML]

APRIL 20, 2022

Key Takeaway from ASML Holding NV earnings call $ASML Q1 2022 10Q:

ASML reported strong financial performance in Q1 2022, with net sales at the high end of guidance. The company expects continued demand exceeding supply and plans to increase capacity to meet future customer needs. Rising costs pose challenges to margins, but ASML remains confident in its long-term growth opportunity and intends to provide an update on growth opportunities beyond 2025.

 

Key points from ASML Holding NV earnings call $ASML Q1 2022 10Q

– Corporate participants included Skip Miller (Vice President, Investor Relations), Peter Wennink (President and CEO), and Roger Dassen (Executive VP and CFO).

– Analysts participating in the call were Joseph Quatrochi, Robert Sanders, Didier Scemama, Krish Sankar, Adithya Metuku, C.J. Muse, Aleksander Peterc, Rolf Bulk, Stephane Houri, and Francois-Xavier Bouvignies.

– The call discussed ASML’s first-quarter 2022 financial results and provided an overview of the company’s performance.

– Net sales for the quarter were EUR3.5 billion, with net system sales of EUR2.3 billion, balanced between logic and memory.

– Gross margin for the quarter was 49.0%, and operating expenses were EUR739 million for R&D and EUR208 million for SG&A.

– Net income for Q1 was EUR695 million, resulting in an EPS of EUR1.73.

– The order book for the quarter was strong, with net system bookings of EUR7.0 billion, driven by logic and memory segments.

– Q2 2022 expectations included total net sales between EUR5.1 billion and EUR5.3 billion, with EUR1.2 billion in Installed Base Management sales.

– Gross margin for Q2 was expected to be between 49% and 50%, with anticipated cost pressures.

– Rising costs, including labor, components, transportation, and energy, were identified as potential challenges affecting margins.

– ASML’s outlook remained positive, with strong customer demand across all market segments and an expected growth rate of around 20% over 2021.

– The company anticipated continued high demand and planned to add capacity to meet future customer needs.

– ASML’s goal was to increase annual capacity by 2025 to around 90 EUV 0.33 NA systems, 600 deep UV systems, and secure capacity for High-NA systems.

– An update on growth opportunities beyond 2025 would be provided in the Q4 timeframe.

– The call concluded with a Q&A session, where participants were asked to limit themselves to one question with a short follow-up.

 

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