ASML earnings report Q1 2024

• Net sales: 5.29 billion euros ($5.62 billion) versus 5.39 billion euros expected.
• Net profit: 1.22 billion euros versus 1.07 billion euros expected.

Net sales fell 21.6% year-over-year while net income fell 37.4%. ASML’s net revenue fell amid the company’s forecasts.

ASML’s closely watched net machine bookings totaled 3.6 billion euros in the first quarter, down 4% year-on-year but plummeting by almost two-thirds compared to the December quarter. .

ASML is one of the world’s largest semiconductor companies, producing tools known as extreme ultraviolet lithography machines needed to make the world’s most advanced chips.

Last year, weak demand for consumer electronics devices such as smartphones and laptops hit chipmakers that produce semiconductors for these devices. This in turn led to slightly lower demand for ASML’s equipment.

However, various semiconductor companies, such as memory chip maker Samsung, are seeing a rebound in demand.

ASML previously said it expects net sales for 2024 to be similar to 2023 and reiterated that projection on Monday. ASML achieved a net turnover of 27.6 billion euros in 2023.

“Our outlook for the full year 2024 remains unchanged, with the second half expected to be stronger than the first, in line with the sector’s continued recovery from the economic downturn,” Peter Wennink, CEO of ASML, said in a statement.

“We view 2024 as a transition year with continued investments in capacity expansion and technology, to be ready for the turning point in the cycle.”

ASML’s equipment is purchased by the world’s largest chipmakers, such as Taiwan Semiconductor Manufacturing Co., Samsung and Intel.

Part of ASML’s optimism comes from the fact that Samsung, TSMC and Intel are increasing their production capacity in the United States, with the support of funding from the US CHIPS and Science Act.

“I think by 2025 you’ll see all three of these elements come together. New factory openings, strong secular trends and an industry in full recovery,” Roger Dassen, ASML’s chief financial officer, said in an interview pre-recorded video. .

ASML has not yet taken into account the impact of export restrictions to China in the first quarter.

Following US pressure, the Dutch government introduced restrictions in June last year on the export of advanced semiconductor equipment, including ASML’s machines.

However, the company reported in a document released alongside its results that sales of its systems to China accounted for 49% of the total in the first quarter, up from 39% in the fourth quarter of 2023.

ASML previously said export restrictions would impact sales in China by 10-15% this year.