The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ASML Holding beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and earnings per share shrank significantly.
Margins dropped across the board.
ASML Holding chalked up revenue of $1.6 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $1.5 billion. Sales were 23% lower than the prior-year quarter's $2.0 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.88. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. GAAP EPS of $0.88 for Q4 were 29% lower than the prior-year quarter's $1.24 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 41.0%, 400 basis points worse than the prior-year quarter. Operating margin was 23.9%, 910 basis points worse than the prior-year quarter. Net margin was 23.5%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.3 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $5.5 billion. The average EPS estimate is $2.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 168 members out of 178 rating the stock outperform, and 10 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give ASML Holding a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ASML Holding is outperform, with an average price target of $39.98.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.