From NBC Universal: 2024-04-17 10:36:15

Shares of ASML dropped 4.5% in early trading after missing sales forecasts, but maintained full-year outlook. Net sales were 5.29 billion euros and net profit was 1.22 billion euros, both below analyst expectations. Net sales fell 21.6%, net income fell 37.4%. Bookings dropped 4% year-on-year and two thirds versus last quarter.

Weak demand for electronics impacted chipmakers and ASML’s sale of extreme ultraviolet lithography machines. Samsung and other chipmakers are seeing a rebound in demand, but ASML’s Q1 orders were worse than expected. Analysts raise concerns about economic uncertainty and upcoming product transitions.

ASML expects 2024 sales to be similar to 2023, projecting a stronger second half. CEO mentions continued investments for industry recovery. Major chip manufacturers like Samsung, TSMC, and Intel purchasing ASML equipment for production ramp-ups in America. Potential impact from US export restrictions to China remains unaddressed.

Sales to China accounted for 49% of total in Q1, up from 39% in Q4 2023. Export restrictions may impact 10-15% of China sales this year. Dutch government introduced export curbs on semiconductor equipment last year due to US pressure. ASML remains cautiously optimistic for 2024 despite challenges.



Read more at NBC Universal:: ASML earnings report Q1 2024