ASML beats EPS expectations but disappoints with earnings, leading to a 7% drop in shares.

From Nasdaq MarketSite: 2025-04-24 10:37:00

ASML (NASDAQ: ASML) is a key player in the semiconductor industry, manufacturing EUV lithography machines for advanced chip production. Despite beating EPS expectations, disappointing earnings caused a 7% dip in shares. ASML has a near-monopoly in this equipment, with a 52-week total return of -24% as of Apr. 23.

In Q1 2025, ASML reported a 46% revenue increase to €7.7 billion and an EPS of €6, surpassing estimates by 5%. Despite slightly below expected Q2 revenue guidance, the company reaffirmed its 2025 revenue outlook of €30-35 billion. Concerns arose from a 44% drop in net bookings from Q4 2024.

ASML remains confident in its growth through 2030, expecting revenue to increase by 50-105% and gross margin to expand by 180-580 basis points. The company’s advanced lithography equipment, especially the High-NA EUV technology priced at $380 million, is expected to drive margins. ASML also plans buybacks and offers a 1% dividend yield. Wells Fargo and Susquehanna updated their price targets, hinting at a potential 37% rise in ASML shares. ASML, a leading supplier of semiconductor manufacturing equipment, reported a 35% increase in net profit for the third quarter of 2021. The company’s revenue also rose by 21% to €5.02 billion, driven by strong demand for its advanced lithography systems. ASML’s stock price on the NASDAQ exchange also saw a significant boost following the earnings report.



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