ASML Plunges 7% on Q1 Revenue Miss
ASML Holdings (NASDAQ:ASML) experienced a 7% intra-day drop in its shares following the announcement of first-quarter sales for fiscal 2024 that did not meet expectations. The company reported net sales of 5.29 billion euros, which fell short of the expected 5.39 billion euros. However, its net profit reached 1.22 billion euros, surpassing the forecasted 1.07 billion euros.
Year-over-year comparisons show a 21.6% decrease in net sales and a significant 37.4% reduction in net income. A notable concern was the net bookings for ASML’s equipment, a critical indicator of future revenues, which totaled 3.61 billion euros. This figure represents a 4% decrease from the previous year and a significant decline from the prior quarter, falling well below the expected 4.63 billion euros.
Despite these challenges, ASML maintained its annual sales forecast at 27.6 billion euros, the same as the previous year, and anticipates stronger performance in the second half of 2024, aligning with the broader industry recovery from the downturn. CEO Peter Wennink described 2024 as a transitional year, emphasizing ongoing investments in capacity ramp-up and technology to prepare for an anticipated market upturn.
ASML also highlighted the necessity to secure around 4 billion euros in orders each subsequent quarter to achieve its 35 billion euros revenue goal for the year, indicating the company’s strategic focus on meeting these targets amidst current challenges.
| Symbol | Price | %chg |
|---|---|---|
| AMD.BA | 18425 | 0.14 |
| TXN.BA | 53250 | 0.66 |
| 000660.KS | 191800 | 0 |
| LRCX.BA | 21050 | -0.24 |
ASML Stock Falls After Q3 Miss
Following weaker guidance, ASML Holding (NASDAQ:ASML) saw a more than 2% drop in its stock price in pre-market after reporting lower-than-expected orders, leading to a cautious sales forecast for the next year.
This caution arises from clients conserving cash due to economic uncertainties. While the company acknowledges that the semiconductor industry may have reached a trough, the uncertainty surrounding the shape of the demand recovery is causing customers to be cautious. Chief Financial Officer Roger Dassen noted that customers are exercising prudence with cash and capital expenditures, which is reflected in their order placements.
The company's net profit for the three months ending on September 30 was 1.9 billion euros, in line with analysts' expectations. However, net bookings were significantly lower at 2.6 billion euros compared to the third-quarter sales of 6.7 billion euros. Revenues came in at 6.67 billion euros, missing the Street estimate of 7.31 billion euros.
Despite the cautious outlook for 2024, ASML maintains a robust order backlog of 35 billion euros, and the company expects a more favorable 2025, given its customers' expansion plans across Asia, the United States, and Europe.
Analysts Warn of Shipment Cuts at ASML Holdings
ASML Holdings (NASDAQ:ASML) shares fell more than 1% pre-market today due to concerns raised by TF International Securities' analysts, who believe that the company will likely make significant reductions in its EUV equipment shipment forecasts for 2024, possibly by 20-30%.
The analysts’ warning is based on several factors, including lower expected demand for Apple's 3nm chips in 2024, reduced demand for Qualcomm's 3nm chips due to Huawei's chip sourcing halt, lower-than-expected demand for Samsung's and Intel's chips, and delays in memory expansion plans by Samsung, Micron, and SK Hynix, now expected to happen between 2025 and 2027.
Analysts Warn of Shipment Cuts at ASML Holdings
ASML Holdings (NASDAQ:ASML) shares fell more than 1% pre-market today due to concerns raised by TF International Securities' analysts, who believe that the company will likely make significant reductions in its EUV equipment shipment forecasts for 2024, possibly by 20-30%.
The analysts’ warning is based on several factors, including lower expected demand for Apple's 3nm chips in 2024, reduced demand for Qualcomm's 3nm chips due to Huawei's chip sourcing halt, lower-than-expected demand for Samsung's and Intel's chips, and delays in memory expansion plans by Samsung, Micron, and SK Hynix, now expected to happen between 2025 and 2027.
