How did ASML's Q1 2023 earnings surprise the market?

ASML's Q1 2023 earnings exceeded market expectations, as evidenced by the positive surprise in both earnings per share (EPS) and revenue.

1. **Earnings Surprise**: ASML reported an EPS of $6.12 for Q1 2023, which represents a significant year-over-year change of +81.1%. This substantial increase exceeded market expectations, indicating a strong financial performance for the period.
2. **Revenue Surprise**: The company's revenue for the quarter was estimated at $8.08 billion, which reflects a year-over-year growth of 40.65%. This growth outpaced market forecasts, suggesting a robust demand for ASML's equipment and services in the semiconductor industry.
3. **Analyst Expectations**: Prior to the earnings release, analysts had revised their estimates upward, with the Zacks Consensus Estimate for EPS changing by +1.6% over the last 30 days. This reflects growing optimism among analysts regarding ASML's business prospects and profitability, which was subsequently validated by the company's actual earnings performance.
4. **Stock Market Reaction**: Following the earnings release, ASML's stock did not show an immediate positive reaction. In fact, it had experienced a decline of 1.1% over the past month, underperforming the Computer and Technology sector and the S&P 500. This suggests that factors other than earnings may have influenced the stock's performance in the period.

In conclusion, ASML's Q1 2023 earnings exceeded market expectations, with both EPS and revenue surpassing forecasts. This positive surprise reflects the company's strong financial performance and growth prospects, which are likely to influence investor sentiment and market perceptions of ASML's stock.