Although ASML in Veldhoven, Netherlands, reported robust financial performance in its last reported quarter, analysts expect its EPS to decrease 52.3% year-over-year to $1.84, and its revenue to decline 27.6% to $3.80 billion for the first quarter, ending March 31, 2022. In addition, ASML's Berlin factory was recently destroyed by a fire, which hampered the production of DUV and wafer clamp, a module used to produce its EUV systems that cost $60 million and $150 million, respectively. Hence, a delay in producing even a single system could drastically reduce ASML's revenue. The stock is down 27.5% in price year-to-date.
In addition, the escalating war between Ukraine and Russia has disturbed the global supply of neon gas, which is essential for ASML in producing gas-phase lasers in its DUV systems. So, we think the stock is best avoided now.
