ASML Q3 Earnings Review

Earnings season started! These next couple of weeks I’ll be covering Asml, Tesla, Microsoft, Google, Texas Instruments, Zoetis, Mercado Libre, Burford, and HireQuest.

ASML reported results on Wednesday before the markets opened. The press release, as you may have seen, was leaked the day before. In this article, I’ll go over the company’s quarterly results, management’s commentary, and outlook. At the end, I’ll share my take on it, especially on their update on guidance.

The company reported record quarterly revenue of 7.46 billion Euros, increasing almost 12% on a yearly basis. System sales amounted to 5.92 billion, growing 11.6% and representing 79% of total. Revenue from installed base management was 1.54bn, which was up 12.9% yearly.  

Note: All numbers and charts are computed in Euros.

ASML reported gross profit of 3.79 billion, implying a margin of 50.8%, which was down 100bps yearly. Operating income came in at 2.44 billion, exhibiting a 32.7% margin, which was flat yearly. Lastly, ASML generated 2.07bn in profit. The net profit margin for the quarter was 27.8%, down from last year’s 28.4%.

During the quarter, ASML brought in 949 million Euros in cash from operating activities, down almost 200 million from the comparable quarter. Capital expenditures, on the other hand, were 415M, leaving free cash flow at 534 million.