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: ASML said it expects ‘limited’ impact from new U.S. restrictions on China as shares jump after better-than-expected results

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ASML Holding NV said Wednesday that it expects “limited” impact from U.S. sanctions on China, as shares of the Dutch tech group surged on better-than-expected results.

“We are continuing to assess and follow the new U.S. export control regulations. Based on our initial assessment, the new restrictions do not amend the rules governing lithography equipment shipped by ASML out of the Netherlands and we expect the direct impact on ASML’s overall 2023 shipment plan to be limited,” said President and Chief Executive Officer Peter Wennink, in a statement.

The U.S. imposed sweeping restrictions on imports of semiconductors and chip-making equipment to China earlier this month. ASML fell under those regulations after the Dutch government agreed to abide by the ban, but it can still sell older machines to China.

Shares of ASML
ASML,
+5.96%

ASML,
+1.73%
,
a leading supplier for the semiconductor industry, rose over 5% in European trade. The company reported third-quarter net profit fell to €1.70 billion ($1.68 billion) from €1.71 billion against the same period last year. That still beat a consensus forecast of €1.51 billion.

Net sales rose to €5.78 billion from €5.24 billion a year ago, beating the company’s guidance provided earlier this year of between €5.1 billion and €5.4 billion. Gross margin was 51.8% compared with 51.7%, and a guidance range of between 49% and 50% provided by the company.

“There is uncertainty in the market due to a number of global macroeconomic concerns including inflation, consumer confidence and the risk of a recession,” said Wennick.

He said while the company has begun to see “diverging demand dynamics per market segment, the overall demand for our systems continues to be strong.” The company said it saw record bookings in the third quarter of around €8.9 billion.

ASML said it expects fourth-quarter net sales between €6.1 billion and €6.6 billion with a gross margin around 49%. For the full year, it sees revenue of €21.1 billion and a gross margin nearing 50%.

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