ASML trades lower after warning of flat 2024 sales
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ASML (NASDAQ:ASML) shares were in the red premarket after the semiconductor equipment maker warned of flat sales in 2024, while reporting its Q3 results.
The Netherlands-based company noted that customers continued to be uncertain about demand recovery in the industry.
"We therefore expect 2024 to be a transition year. Based on our current perspective, we take a more conservative view and expect a revenue number similar to 2023," said ASML President and Chief Executive Officer Peter Wennink.
On Tuesday, U.S. Commerce Department expanded its export controls on semiconductors to China, restricting the sale of chips designed specifically for the Chinese market, impacting companies such as Nvidia (NVDA), AMD (AMD) and more.
ASML said on Tuesday that the export control measures will likely have an impact on the regional split of its systems sales in the medium to long term. However, it does not expect these curbs to have a material impact on its outlook for 2023 and for our longer-term scenarios for 2025 and 2030.
The company's Q3 net bookings
declined ~42% Q/Q to â¬2.6B. Year-over-year net bookings fell 70.8%.
Q3 net sales grew +15.4% year-over year to â¬6.7B. However Q/Q net sales fell 3.3%.
Wennink noted that Q3 net sales came in around the midpoint of guidance, with a gross margin of 51.9%, higher than guided, mainly due to the DUV product mix and some one-off costs effects.
Dividend: The company said that an interim dividend of â¬1.45 per ordinary share will be made payable on Nov. 10.
Stock buyback: In Q3, ASML bought around â¬100M worth of shares under the current 2022-2025 share buyback program.
Q4 Outlook: The company expects net sales between â¬6.7B and â¬7.1B, including Installed Base Management sales of around â¬1.4B.
Full year 2023 Outlook: ASML expects net sales growth expectation towards 30% with a slight improvement in gross margin, relative to 2022.
ASML -1.41% to $600.06 premarket Oct. 18

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