ASML Earnings Report: Can Bookings Drive a Breakout?
ASML Earnings Report: Can Bookings Drive a Breakout?
The company is trying to weather the tariff storm and deliver another beat
- ASML is set to report earnings before the market opens tomorrow (April 16).
- The computer chip equipment maker has recovered from its sell-off following the U.S. tariffs announcement.
- The options market expected move is at 42.70 points, or 6.3% of the stock price.
Computer chip equipment maker ASML (ASML) is scheduled to report earnings tomorrow (April 16), before the market open.
The company is a leader in extreme ultraviolet (EUV) lithography, a crucial manufacturing process for advanced semiconductors that allows for more transistors on a single chip vs. other methods. Its customers include Nvidia (NVDA), Intel (INTC), Micron Technology (MU) and Taiwan Semiconductor Manufacturing (TSM).
The stock has managed to weather the market volatility that came following the April 2 Liberation Day, which officially marked the start of the U.S. trade war. Its business is somewhat insulated from tariffs because its customers are large firms with long lead times from order to delivery.
The company also has a strong backlog, another factor that can help displace some of the affects of the tariffs.
What do investors expect?
Net bookings are in focus for earnings. Analysts expect the first quarter figure to come in at $5.5 billion, but it could be stronger because the Trump administration is pushing for re-shoring chipmakers.
Last quarter, ASML logged twice as much booking volume as analysts expected, leading to a gain of over 7% in its stock price following fourth-quarter earnings.
According to TradingView, analysts expect earnings per share (EPS) of $5.74 on $7.77 billion of revenue. Last year, ASML reported EPS of $3.11 on $5.29 billion of revenue.
The company has a solid track record of beating EPS and revenue estimates, topping both in the last four quarters. Analysts are largely bullish on the stock, with 38 awarding it strong buy and buy ratings, 14 giving it hold ratings and only two handing it sell ratings.
Trading ASML earnings
ASML trades with an implied volatility rank of 48.5, meaning that volatility is about average compared to the past twelve months of trading.
Technically, the company is trading at the midpoint of its 2025 high and low. The expected move per the options market calls for +/- 42.70 points, or 6.3% of the 681.52 stock price.
If it stays within that expected move, it would stay within its 2025 high/low range. That said, traders can play an iron condor if they have a neutral view of the post-earnings reaction and don’t expect it to break out of its technical range.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. #@fxwestwater
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