Shares of ASML Holding (AS:ASML) fell more than 13% on Tuesday after the semiconductor equipment maker reported third-quarter results that fell short of analyst expectations, while guidance disappointed investors.
More specifically, the stock was affected by the company’s missed net bookings in the third quarter and revenue expectations for the fiscal year.
ASML posted an adjusted profit of €5.28 per share in the third quarter, missing the consensus estimate of €5.40. Turnover came to €7.47 billion, less than the expected €7.9 billion, but an increase of 19.6% year on year. The company’s net quarterly bookings of €2.6 billion were significantly above estimates of €5.39 billion.
For the fourth quarter, ASML expects sales between €8.8 billion and €9.2 billion, with a gross margin of 49% to 50%. The company expects full-year 2024 revenue expectations to be approximately €28 billion.
Looking ahead to 2025, ASML expects revenues of €30 billion to €35 billion, the lower half of previous expectations, with gross margins of 51% to 53%, below previous expectations.
CEO Christophe Fouquet cited a more gradual market recovery than expected, stating: “While strong developments and upside potential in AI remain, other market segments will take longer to recover.”
The company noticed slower growth of new nodes among certain customers in the Logic segment, leading to fab-outs and changes in the timing of lithography demand, particularly for EUV systems. In Memory, ASML sees limited capacity expansions, with a focus on AI-related technology transitions.
ASML has announced an interim dividend of €1.52 per share, payable on November 7, 2024.
Elsewhere, names like Nvidia (NASDAQ:NVDA) (-4%) and AMD (NASDAQ:AMD) (-4.2%) have also fallen following the ASML release.
Related articles
ASML shares are plummeting as third-quarter net bookings miss estimates and disappoint prospects
Poland Shares Lower at Close of Trading; WIG30 down 0.16%
Danish shares fall at close of trading; OMX Copenhagen 20 drops 1.59%
