ASML’s margins leap higher despite semiconductor downcycle – Proactive Investors USA
Pharma & Biotech
Sustainability
Cannabis
Battery Metals
Artificial Intelligence
Proactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) and this website (the Site) on the terms set out in this disclaimer, together with all other terms and conditions, disclaimers and other notices displayed elsewhere on this Site. It is important for you to know that: (a) none of the Content is, or is intended to be, general or personal advice (b) the principal purpose of the Content is to provide factual information only and to comment on news; (c) the Content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including in respect of any particular security, portfolio of securities, transaction or…
William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical writing. Other jobs have… Read more
Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists.
Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth.
We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors.
The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies.
Proactive has always been a forward looking and enthusiastic technology adopter.
Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows.
Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation.
Published: 06:42 24 Jan 2024 EST
ASML Holding NV (NASDAQ:ASML), the Dutch maker of semiconductor lithography machinery, managed to steer its revenues and margins higher in 2023 despite a generally depressed chipmaking environment.
Net sales for the year came to €27.6, while net income of €7.8 billion resulted in an annual earnings per share (EPS) of €19.91.
ASML’s margins increased in every major aspect, gross margins increasing from 50.5% in 2022 to 51.3% in 2023 and net income margins increasing from 26.6% to 28.4%.
The group commands these high margins partially due to its ‘installed base management’ sales, encompassing equipment servicing and field work offerings.
ASML’s complex lithography machinery, which is used for manufacturing semiconductors, requires highly specialised on-site maintenance support, meaning ASML’s three core clients, Taiwan Semiconductor Manufacturing Company, Intel Corporation and Samsung Electronics (KRX:005930), are effectively locked into perpetual installed base management contracts.
These high-margin contacts comprised 20% of group-wide sales in 2023.
ASML sold 421 new lithography machines and 28 used machines over the 12-month period, representing a 23% total increase.
This is despite the semiconductor industry being in a cyclical downturn.
However, with sales weighted to a record-setting fourth quarter, signs of recovery have emerged.
As chief executive Peter Wennink commented: “The semiconductor industry continues to work through the bottom of the cycle. Although our customers are still not certain about the shape of the semiconductor market recovery this year, there are some positive signs.
“Industry endmarket inventory levels continue to improve and litho tool utilisation levels are beginning to show improvement. Our strong order intake in the fourth quarter clearly supports future demand.”
For the first quarter of 2024, ASML expects net sales between €5 billion and €5.5 billion with a gross margin between 48% and 49%.
The group maintains a “conservative view” of the full year ahead, with total sales in 2024 expected to be roughly the same as in 2023.
ASML intends to declare a total dividend for the year 2023 of €6.10 per ordinary share.
The market was encouraged by these results, sending ASML shares 6.5% higher on Wednesday.
Sign up to receive alerts and news direct to your inbox
Ilika PLC (AIM:IKA, OTCQX:ILIKF) CEO Graeme Purdy joined Proactive's Stephen Gunnion with details of the company's milestones over the past year. Following the release of its full-year results to 30 April 2024, Purdy outlined the achievements in Ilika's Stereax and Goliath battery programs,…
Copyright © Proactive Group Holdings Inc, 2024
All Rights Reserved – Proactive North America Inc., Proactive Investors LLC.
Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.
