The value of new orders fell by 42 percent to 2.6 billion euros compared to the previous quarter, the EURO STOXX 50 heavyweight announced on Wednesday in Veldhoven. Experts surveyed by Bloomberg had expected the value to remain unchanged. Sales fell by just over three percent to just under 6.7 billion euros. Here too, analysts had expected a higher value. However, the gross margin was slightly better than expected. This increased slightly to 51.9 percent compared to the second quarter.
The industry is still in a trough. “Our customers expect the tipping point to be reached by the end of the year,” said Wednesday’s statement. However, chip manufacturers are still uncertain about what the recovery in demand in the industry will look like. “We therefore expect 2024 to be a transition year.” Sales are expected to be at the level of the current year. However, the group is forecasting significant growth again in 2025. In the fourth quarter, ASML expects sales of 6.7 to 7.1 billion euros with a gross margin of between 50 percent and 51 percent.
ASML shares under pressure after numbers – semiconductor stocks affected
The shares of the semiconductor supplier ASML reacted to quarterly figures with price losses on Wednesday. After a slide to 544.30 euros, they recently put their loss into perspective again. Now they are temporarily trading 2.32 percent lower at EURONEXT in Amsterdam at 559.60 euros.
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The losses also affected some other stocks in the semiconductor sector. STMicroelectronics lost almost 1.7 percent at its peak. The tensions between China and the USA also played a role. In the competition to develop artificial intelligence, the USA tightened its restrictions on chip deliveries to China.
ASML felt the industry’s weakness in orders in the third quarter. The value of new orders fell by 42 percent to 2.6 billion euros compared to the previous quarter. Experts surveyed by Bloomberg had expected the value to remain unchanged. Sales fell by just over three percent to just under 6.7 billion euros. Here too, analysts had expected a higher value. However, the gross margin was slightly better than expected.
Analysts at Jefferies saw the semiconductor supplier’s outlook as slightly below expectations, while the figures for the third quarter were overall in line with forecasts. The company is currently suffering from customer reluctance and is taking a conservative stance on the outlook, assuming 2024 will be a transition year. The US restrictions against China could also play a role. This could encourage investors to look ahead to 2025. Regardless of the current situation, the expert sees the sector in an early phase of the upswing.
According to the experts at JPMorgan, investors should first wait and see what the figures and forecasts of other companies in the industry are. At least there is now some clarity at ASML with the statement that 2024 will be a year of transition. The share therefore has the chance to bottom out.
ASML shares have been going downhill since the end of May – only interrupted by occasional attempts at recovery. Since the record high of 777.50 euros reached in November 2021, it has fallen by 28 percent. Despite the decline in the past two years, the stock is one of the biggest winners on the European stock market in the medium and long term. In the past five years the price has increased by around 270 percent; over ten years it is a good 700 percent. With a market value of 230 billion euros, ASML is one of the most valuable companies in Europe.
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VELDHOVEN (dpa-AFX)
Image source: ASML