Dutch chipmaker ASML (AS:) this morning opened its books for the fourth quarter of 2022. Revenue was in line with expectations at 6.4 billion euros, on which it managed to achieve a gross margin of 51.5 percent. This is one and a half percent higher than previously assumed. The net result amounted to 1.8 billion euros or 4.60 per share. stock. For the whole of 2022, the turnover amounted to 21.2 billion euros and the gross profit was 50.5 percent. This resulted in a net profit of 5.6 billion euros or 14.14 euros per share. Analysts had expected a net profit of 5.51 billion euros.
The order book increased in the fourth quarter by 6.3 billion euros in orders, of which 3.4 billion euros were for the latest EUV machines. This brings the total order book to 40.4 billion euros, almost double the entire turnover last year. The current demand is therefore still much higher than ASML can produce. ASML therefore feels little to fear of a possible recession. Because despite the fact that ASML’s clients have seen the markets deteriorate in recent months, they are already placing orders to anticipate the future recovery.
All in all, great numbers, but who knows, the short-term outlook may have disappointed investors. For the current quarter, ASML expects to achieve a turnover of between 6.1 and 6.5 billion euros with a corresponding margin of between 49 and 50 percent. Analysts assumed 6.1 billion euros, but with a margin of 51.4 percent. In short, a little sweet and a little sour, but ASML has often proved to be too cautious, judging by the 4th quarter figures. It has previously warned that the company may incur extra costs due to high inflation and capacity expansion.
For the whole of 2023, ASML expects a sales increase of at least 25 percent with a small increase in gross profit compared to 2022. A significant acceleration compared to last year’s increase in revenue of 14 percent. We therefore put the price drop after opening under the heading ‘owning the company is the end of the fun’. We remain positive about this top Dutch company.
Microsoft (NASDAQ: ) last night released its financial numbers for the second quarter of 2023. On revenue of $52.75 billion, Microsoft posted a net profit of $17.37 billion, or $2.32 per share. Despite the turnover falling slightly below the bar, the profit was not too bad. Analysts had expected earnings of $2.29 per share.
That sales of the Windows operating system plummeted by 39 percent did not bother investors. During the pandemic, much more was spent on computers, which means that, according to the analysis agency Gartner, around 30 percent fewer computers have been sold worldwide. However, investors are focusing more on Microsoft Cloud sales and they were fine. Here, Microsoft posted $27.1 billion in revenue, up 29 percent in constant currency. Intelligent Cloud flagship Azure even saw its revenue increase by 38 percent, exceeding expectations.
As a result, Azure now has a 30 percent market share in cloud services, where four years ago it was just 20 percent. Gaming has caught up, and according to CEO Nadella, the next big wave in computing is about to be born. Microsoft’s Cloud transforms the world’s most advanced Artificial Intelligence models into a new computing platform, Nadella said, to emphasize the importance of the additional investments in the chatbot ChatGPT.
After these good reports and numbers, however, a setback appeared during the conference call with analysts. After a growth of almost forty percent in the Azure cloud, Microsoft expects a dampening of the growth of about 4 to 5 percent for the current quarter. The reason for this is that large customers are currently trying to save money on their existing applications running in the cloud. While investors initially put the stock 5 percent higher after the market, that profit evaporated like snow in the sun, and the stock is now nearly 2 percent lower before the market.