ASML Stock Under Pressure: Disappointing Q3 Figures Cast Shadow on Semiconductor Market

The stock of ASML, a leading manufacturer of semiconductor equipment, recorded a significant decline of over 13% on Tuesday. The reason for this is the disappointing financial results of the third quarter and an outlook deemed insufficient by investors. Specifically, the adjusted earnings per share were 5.28 euros, below the consensus estimate of 5.40 euros. Revenue amounted to 7.47 billion euros, missing the expected 7.9 billion euros, although it increased by 19.6% compared to the previous year. Particularly disappointing were the net new bookings of 2.6 billion euros, significantly below the estimated 5.39 billion euros. For the fourth quarter, ASML expects revenue between 8.8 and 9.2 billion euros and a gross margin of 49 to 50%. For the entire year 2024, revenue of around 28 billion euros is expected. Looking ahead to 2025, the company forecasts revenue between 30 and 35 billion euros, which represents the lower half of the previous forecast. The gross margin is expected to be between 51% and 53%, also lower than anticipated. CEO Christophe Fouquet states that the market recovery is proceeding more slowly than expected. While there are opportunities in the field of artificial intelligence, other segments are experiencing delays. This particularly affects the demand for EUV systems and capacity expansions in the memory sector, which focuses on AI technology transitions. ASML also announced an interim dividend of 1.52 euros per share, to be paid on November 7, 2024. Other market heavyweights like Nvidia and AMD also recorded share price losses following the ASML release.