ASML Stock Soars on Chipmaking Equipment Giant’s Earnings Beat
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Key Takeaways
Chipmaking equipment giant ASML reported record orders for the fourth quarter, and earnings that beat analysts’ expectations.
However, the company warned future sales to China could be impacted by export restrictions.
ASML said it anticipates exports to China will be 10-15% lower in 2024 than they were last year.
ASML (
ASML
) surged over 10% in intraday trading Wednesday after the chipmaking equipment giant reported
earnings
that beat expectations, with record orders in the fourth quarter.
Europe’s largest tech firm by
market capitalization
said its net profit rose 9% from a year earlier to 2 billion euros ($2.2 billion) with sales of 7.2 billion euros ($7.8 billion) during the fourth quarter. Both exceeded analyst estimates.
Quarterly net bookings rose to a record 9.2 billion euros ($10 billion), driven by demand for some of ASML’s most sophisticated equipment.
However, the company warned future sales to China could be impacted by new
export restrictions
, with deliveries to China anticipated to fall 10-15% in 2024.
ASML said it plans to pay a
dividend
for the year of 6.10 euros ($6.65) per ordinary share, which is a 5.2% increase over 2022. An interim dividend of 1.45 euros ($1.58) per share will also be paid in February.
ASML’s stock price was up 10.6% to $860.04 as of about 12:10 p.m. ET Wednesday following the news. It has gained over 28% over the past year.
