ASML Expected to Exceed Q4 Earnings Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8h ago
0mins
Source: seekingalpha
- Strong Earnings Outlook: ASML is projected to report earnings of €7.55 per share and revenue of €9.58 billion in its upcoming Q4 earnings on January 28, indicating robust performance and market confidence in the semiconductor sector.
- Competitor Support for Optimism: Positive comments from major competitors such as TSMC, Samsung Electronics, and Intel further bolster market confidence in ASML, highlighting its dominant position in EUV technology.
- Future Growth Potential: Analysts anticipate a margin step-up in 2025 driven by AI demand beyond 2027, although cash conversion rates are expected to dip in 2025, stabilizing around 65%-70% in the long term.
- Estimates Revision Trend: Over the past three months, ASML has seen 11 upward revisions in EPS estimates and 10 upward revisions in revenue estimates, reflecting strong market expectations for its future performance and solidifying its position in the industry.
Analyst Views on ASML
Wall Street analysts forecast ASML stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASML is 1344 USD with a low forecast of 1140 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 1413.350
Low
1140
Averages
1344
High
1500
Current: 1413.350
Low
1140
Averages
1344
High
1500
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
