ASML Holding NV (NASDAQ:ASML) forecast sales growth of 20% in 2022

ASML Holding NV (NASDAQ:ASML) stock rose 3.68% (As on Jan 20, 11:20:19 AM UTC-4, Source: Google Finance) after the company forecast sales growth of 20% in 2022 despite a fire this month at its Berlin plant as the supplier to chipmakers reported better-than-expected fourth-quarter profit. The Dutch semiconductor group posted a full-year net income of 5.88 billion euros ($6.66 billion), or 14.36 euros per basic share for 2021, up from 3.55 billion euros, or 8.49 euros per basic share, a year earlier. Analysts polled by Visible Alpha expected 5.59 billion euros in net income, or 13.59 euros per share. Net sales reached 18.61 billion euros, compared with 13.98 billion euros a year ago and slightly below the consensus estimate of 18.68 billion euros. Meanwhile, net bookings for the year totaled 26.24 billion euros, more than double the 11.29 billion euros in the previous year.

Furthermore, the semiconductor equipment manufacturer plans declared a total dividend of 5.50 euros per share for 2021, a 100% jump from the 2.75 euros per share dividend paid in the previous year.

Given the high demand for its products, ASML will introduce a fast-shipment process in which the final testing and formal acceptance take place at the customer site in a bid to reduce cycle time in the company’s factory. As a result of fast shipments, the group lowered its first-quarter net sales forecast to between 3.3 billion euros and 3.5 billion euros, reflecting about 2 billion euros of expected revenue to be recognized in subsequent quarters.

Following the Jan. 3 fire in a part of a building in its Berlin factory, the group is confident that it will be able to manage the consequences of the event without significant impact on its system output for 2022. ASML also noted that it continues to work together with its supply chain partners to actively expand and improve production capacity in order to meet current and future customer demand.

ASML in the fourth quarter of FY 21 has reported the adjusted earnings per share of $5.01, beating the analysts’ estimates for the adjusted earnings per share of $4.31. The company had reported the adjusted revenue of $5.7 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $5.1 billion.

For full-year 2022, the semiconductor company expects net sales to grow around 20%, compared with 2021.

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