(AOF) – The ASML share lost 3.91% to 877.80 euros and fell to last place in the Dutch AEX index. The equipment manufacturer for the semiconductor sector is penalized due to significantly lower order intake than expected in the first quarter. They amounted to 3.61 billion euros, lower than the level of last year at the same time, 3.75 billion euros, but above all the consensus: 5.1 billion euros. CEO Peter Wennink had already warned in October that 2024 would be a year of transition.
On the other hand, he anticipates “significant growth” in 2025.
“Over the next three quarters, orders of just over €4 billion per quarter are required for ASML to reach the midpoint of its 2025 net revenue target, i.e. 35 billion euros, compared to a consensus of 36 billion euros. We believe that this objective is achievable,” explains UBS.
“Orders in the first quarter were more for machines for DRAM production, but we expect TSMC and Intel to increase their orders in the coming quarters, which will result in higher order levels,” specifies Jefferies.
Quarterly results better than expected
Between January and March, the European technology firm generated net profit down 37.4% to 1.22 billion euros. Operating profit fell to 1.392 billion euros compared to 2.2 billion a year earlier. It was expected at 1.275 billion euros. ASML posted a margin of 26.3%, down 6.4 points. ASML’s revenues fell 21.6% to 5.29 billion euros, while the market was targeting $5.42 billion.
In the second quarter, ASML is targeting sales between $5.7 and $6.2 billion for a gross margin between 50% and 51%. 2024 revenues are expected to be similar to 2023, with a slightly lower gross margin: 51.3% last year.
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