ASML Shares Fall 15% on Booking Miss (€2.63B vs €5.39B) and Lowered 2025 Outlook

Oct 15, 2024, 03:10 PM

ASML Holding NV, the Dutch semiconductor equipment manufacturer, saw its shares plunge over 15% after an inadvertent early release of its third-quarter earnings due to a technical error. The company reported third-quarter net bookings of €2.63 billion, significantly below analysts' estimates of €5.39 billion and down 53% quarter-over-quarter. Net sales for the quarter were €7.47 billion, slightly exceeding expectations, and net income was €2.08 billion, surpassing the consensus estimate of €1.89 billion. The gross profit margin stood at 50.8%, marginally above the expected 50.6%. However, ASML reduced its 2025 net sales guidance to between €30 billion and €35 billion, below previous estimates of €35.94 billion, and cut its gross margin forecast for 2025 to 51%-53% from 54%-56%. The company attributed the lowered outlook to a more gradual recovery in the semiconductor market than previously anticipated, with ASML's CEO stating that while there is strong growth potential in artificial intelligence, other market segments are slower to recover, leading to customer cautiousness. The early release and disappointing outlook not only caused ASML's market capitalization to drop by nearly $50 billion but also triggered a sell-off in semiconductor stocks globally, impacting companies such as NVIDIA and AMD.