ASML Reports Profit Beat but Misses Sales Expectations in Q1

ASML Holding N.V., the Dutch semiconductor equipment maker, reported its first-quarter results, dividend on Monday, with profits exceeding analysts' expectations but sales falling short of forecasts. The company's net income for the quarter was 1.22 billion euros, down from 2.05 billion euros in the previous quarter, while sales totaled 5.29 billion euros, a decrease from 7.24 billion euros in the fourth quarter of 2023.

ASML's net bookings, a closely watched metric indicating future revenue, stood at 3.61 billion euros, a 4% decline year-over-year and a significant drop from the previous quarter. The bookings, demand missed the consensus estimate of 4.63 billion euros, as top chipmakers like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. held off on new orders, forecasts, chip, makers, demand while working through stockpiles of hardware.

Why this matters:ASML's quarterly results, bookings provide insights into the current state of the semiconductor industry, which has been contending with a downturn. As the largest supplier of chip, equipment, orders, sales, hold, despite, us to computer chip makers, ASML's performance is closely watched by investors and industry experts to gauge the health of the sector.

Despite the disappointing bookings, ASML reiterated its outlook for 2024, expecting the second half of the year to be stronger than the first half as the industry continues to recover from the downturn. The company's CEO, Peter Wennink, described 2024 as a "transition year" for ASML, gearing up for strong growth in 2025 due to robust demand for AI and memory chips.

ASML's sales to China remained relatively resilient, accounting for a record 49% of the total in the first quarter, around 2 billion euros. However, new export control measures have affected the company's ability to sell state-of-the-art equipment to China. The incoming CEO, Christophe Fouquet, will have to balance geopolitical pressure from the US while attempting to satisfy shareholders accustomed to growth.

For the current quarter, ASML expects total net sales, net, bookings, short, expectations between 5.7 billion euros and 6.2 billion euros, with a gross margin between 50% and 51%. The company intends to declare a total dividend for 2023 of 6.10 euros per ordinary share, a 5.2% increase compared to 2022.

ASML's first-quarter results, market, sales, drop, expectations reflect the ongoing challenges faced by the semiconductor industry. While the company's profits exceeded expectations, the lower-than-anticipated sales and billion, new, bookings highlight the cautious approach taken by chipmakers in the current economic environment. As ASML traverses the geopolitical landscape and prepares for future growth, its performance will continue to be closely monitored by industry stakeholders.

Key Takeaways

• ASML's Q1 profits exceeded expectations, but sales fell short of forecasts.
• ASML's net bookings, a key metric, declined 4% YoY and missed estimates.
• ASML reiterated its 2024 outlook, expecting stronger H2 as industry recovers.
• ASML's China sales remained resilient, but new export controls impact equipment sales.
• ASML expects Q2 sales and bookings to be lower than expected, reflecting industry challenges.