ASML Holding, a leading manufacturer of semiconductor production equipment, recorded lower orders in the first quarter than analysts expected, as chip manufacturers wait for a recovery in demand before securing key equipment for the coming years.

The Dutch company reported orders of 3.61 billion euros for the three months ending in March, compared to 3.75 billion euros last year. Analysts had expected orders of nearly 5.10 billion euros, according to the consensus estimates from Visible Alpha.

First Quarter Revenues Fell to €5.29 Billion from €6.75 Billion in the Previous Year's Period, Missing Analysts' Forecasts. For the Current Quarter, the Group Expects Revenues Between €5.7 and €6.2 Billion.

The net profit fell to 1.22 billion euros from almost 1.96 billion euros, but exceeded the analysts' forecast of 1.09 billion euros.

The Gross Profit – a highly regarded metric in the semiconductor industry – was at 2.7 billion Euros and achieved a margin of 51%, which was above consensus expectations and company forecasts. For the current quarter, ASML forecasts a gross margin between 50% and 51%.

ASML expects 2024 to be a transitional year, with a stronger second half anticipated in line with the industry's recovery. This year, ASML expects revenues similar to the 27.56 billion euros reported in 2023.

ASML's shares fell by 6% at market open in Amsterdam following lower-than-expected orders. However, the shares have risen in recent months, driven by the expectation that the company will benefit from a recovering semiconductor market. The stock has risen by about 27% since the beginning of the year to approximately 866.00 euros. One year ago, the shares were traded at around 580.00 euros.

ASML expects strong long-term growth and forecasts revenues of up to 40 billion euros for next year and up to 60 billion euros by the end of the decade.