No growth in 2024 should give way to a much stronger 2025.Semiconductor equipment provider ASML (ASML -7.09%) is off to a rough start this year. Demand is muted, particularly for equipment that doesn't use extreme ultraviolet lithography.ASML's revenue sank 22% year over year to 5.29 billion euros in the first quarter. Net bookings and the number of new lithography systems sold slumped, as well. For the full year, the company expects total revenue to be roughly flat, compared to 2023.ASML stock took a mild ...

The stock market today fired another loud warning shot across the bow for growth investors. Wednesday's earnings-fueled decline placed the market outlook on the tipping point for a potential new downgrade. X With earnings news revving into higher gear, it's clear that institutions have sought to downshift their positions in a variety of sectors —… ...

The first quarter of 2024 was pretty much a continuation of what investors saw in 2023. The tech-laden Nasdaq 100 index that gained 51% last year was up almost 10% over the first three months of the new year.April is off to a slower pace, with the index down 3% so far. Inflation reared its head again, putting in doubt when or if the Federal Reserve will cut interest rates. That could result in costs remaining high for businesses looking to finance their next growth project. That could mean Q1’s best-perform ...

Workers at Carl Zeiss ZMT are seen outside giant vacuum chambers where optical systems for ASML's new High NA EUV tool are tested.Chip stocks fell on Wednesday after ASML, a key developer of semiconductor manufacturing equipment, said that bookings fell by 61% sequentially during the first quarter, a steeper drop than investors had expected. During trading on Wednesday, AMD's stock fell over 4%, Nvidia shares fell about 3%, Intel shares fell nearly 2% and Qualcomm was off 2%. But the biggest drop affected c ...

Shares of the chip equipment manufacturer pulled back after a disappointing earnings report.Shares of ASML Holding (ASML -7.34%), the leading manufacturer of semiconductor producing equipment, were moving lower today after the company turned in disappointing results in its first-quarter earnings report.As of 11:54 a.m. ET on Wednesday, the stock was down 7.4% on the news. ASML comes up shortRevenue was down 22% from the quarter a year ago as the company transitions to new technology to prepare for the AI bo ...

Financial Data and Key Metrics - Total net sales for Q1 2024 were EUR5.3 billion, at the midpoint of guidance [8] - Gross margin for Q1 was 51%, above guidance, driven by product mix [9] - Net income in Q1 was EUR1.2 billion, representing 23.1% of total net sales, with EPS of EUR3.11 [9] - Cash, cash equivalents, and short-term investments stood at EUR5.4 billion at the end of Q1, lower than the previous quarter [10] - Q1 net system bookings were EUR3.6 billion, with EUR656 million for EUV and EUR2.9 billion for non-EUV [10] - The backlog at the end of Q1 was around EUR38 billion [11] Business Line Data and Key Metrics - EUV systems revenue recognized was EUR1.8 billion from 11 systems shipped [8] - Net system sales were EUR4 billion, with 63% from logic and 37% from memory [8] - Installed Base Management sales were EUR1.3 billion, in line with guidance [8] - R&D expenses were EUR1.32 billion, and SG&A expenses were EUR273 million, both slightly lower than guided [9] - The NXE:3800E EUV system was shipped for qualification, offering a 37% productivity increase over the NXE:3600D [17] Market Data and Key Metrics - Memory demand is driven by DRAM technology node transitions, supporting advanced memories like DDR5 and HBM [14] - Logic customers are digesting significant capacity additions made over the past year [14] - China sales were EUR1.9 billion in Q1, down from EUR2.2 billion in Q4 2023, but still strong [33] - The company expects a stronger second half of 2024, driven by industry recovery and customer upgrades [19] Company Strategy and Industry Competition - The company views 2024 as a transition year, investing in capacity ramp and technology for the upturn in the cycle [19] - Long-term growth drivers include energy transition, electrification, and AI, with 2025 expected to be a strong year [20] - The company plans to update its market scenarios during the Investor Day on November 14, 2024 [21] Management Commentary on Operating Environment and Future Outlook - The semiconductor industry is recovering, with inventory levels trending towards healthier levels [14] - The company expects memory revenue growth in 2024, driven by technology transitions, but lower logic revenue as customers digest capacity [16] - High NA EUV systems are under installation, with customer interest high for early process development [18] - The company remains confident in long-term growth opportunities despite near-term uncertainties [21] Other Important Information - The company paid a quarterly interim dividend of EUR1.45 per ordinary share in Q1 2024 [13] - Share repurchases in Q1 amounted to 0.5 million shares for EUR400 million [13] - The CEO transition is planned for April 24, 2024, following the AGM [22] Q&A Session Summary Question: EUV Order Intake and China's Role - EUV orders were lower in Q1, but the company expects significant orders from foundry and logic customers in the coming quarters [24][26] - China's share in the order intake is healthy but not overly concentrated, with sales distributed globally [28] - The company's view on China sales impact (10%-15%) remains unchanged despite ongoing export control discussions [30] Question: China Business Trends - China sales were strong in Q1 but lower than Q4 2023, with demand driven by mature technology [33][35] - The company expects China to remain strong in 2024, with capacity additions aligned with global needs [36] Question: EUV and 2nm/3nm Demand - Foundry customers are digesting 3nm and 5nm capacity, with 2nm ramp expected to start next year [38] - EUV layer counts for 2nm are similar to 3nm, with no significant changes expected [39] Question: Order Cadence and Pre-Building Tools - The company's pre-building of low NA tools is based on customer needs and long lead times, not just order timing [43][46] - Memory orders are still driven by technology transitions like DDR5 and HBM [48] Question: High NA EUV Lead Times and Adoption - High NA EUV systems have achieved first images with sub-10nm resolution, with customer interest high for early process development [56] - The company expects further decisions on High NA adoption after customer exposure to the system in the lab [57] Question: Long-Term Growth and Electrification - High-performance compute and AI are driving demand for both advanced and mainstream semiconductors [60][62] - Electrification and grid upgrades are significant drivers for mainstream semiconductor demand [71][74] Question: Second-Half Revenue Growth and China - The company expects strong second-half revenue growth, driven by fab openings and capacity ramps across logic and memory [77] - China sales are expected to remain strong, with demand supported by mature technology [78] Question: Memory Capacity and DPV Orders - Memory utilization is increasing, with capacity additions expected in the second half of 2024 [81] - Revenue growth in memory will be driven by both technology transitions and bit additions [83] Question: Backlog Composition and NXE:3800E Throughput - The company does not disclose the geographic composition of its backlog but notes China's share is around 20% [86] - The NXE:3800E will reach 220 wafers per hour in the second half of 2024, with upgrades planned for early 2025 [87] Question: EUV Adoption in DRAM - EUV layer counts in DRAM are increasing node by node, with high bandwidth memory driving wafer capacity needs [93] - The company expects the 70-30 mix between logic and memory for EUV to remain stable [95]

ASML (NASDAQ:ASML) is one of the top trending tickers today as ASML stock falls more than 6% as of this writing. This downturn comes after the Netherlands-based company — which makes machinery for semiconductor manufacturing — reported that orders tumbled in the first quarter compared to Q4.Here’s what investors should know as ASML stock falls further today.ASML and the Q1 ResultsASML’s net bookings came in at 3.6 billion euros ($3.84 billion) for Q1 2024, well below analysts’ average estimate for almost 5. ...

ASML reports €5.3 billion total net sales and €1.2 billion net income in Q1 2024 2024 outlook unchanged ASML 2024 First-Quarter results Veldhoven, the Netherlands April 17, 2024 Public Agenda • Investor key messages • Business summary ...

Key PointsASML had a weak quarter, highlighted by weak orders that undercut the guidance. ASML reaffirmed guidance but expects a significant uptick in the back half that may not come. Cash flow is solid, and the balance sheet is healthy, so a buy-the-dip opportunity is emerging, but the dip isn't over, and lower prices are ahead. 5 stocks we like better than ASMLASML NASDAQ: ASML struggled in Q1 and has a warning for semiconductor investors. The warning is that new orders were less strong than hoped and und ...

Financial Performance - Q1 2024 total net sales of €5.3 billion, gross margin of 51.0%, and net income of €1.2 billion[3][4] - Q1 2024 gross margin was 50.6%, with net income as a percentage of net sales at 29.0%[29] - Net income for the quarter ended Apr 2, 2023, was €1,955.8 million, compared to €1,223.8 million in the previous quarter[39] - Total net sales for the quarter ended Mar 31, 2024, were €5,290.0 million, down from €7,237.0 million in the previous quarter[40] - Gross profit as a percentage of net sales was 51.0% for the quarter ended Mar 31, 2024, compared to 51.4% in the previous quarter[41] - Net income as a percentage of net sales decreased to 23.1% for the quarter ended Mar 31, 2024, from 28.3% in the previous quarter[41] - Net income for the quarter ended Mar 31, 2024 was €1,223.8 million, a decrease of 40.2% compared to €2,048.1 million in Dec 31, 2023[43] Sales and Bookings - Q1 2024 net bookings of €3.6 billion, including €656 million from EUV systems[3][4] - Q1 2024 net system bookings were €3,611 million[22] - Q4 2023 net system bookings were €9,186 million[23] - Q1 2024 lithography systems sold were 100 units, with net bookings of 3,752[29] - Sales of lithography systems dropped to 70 units in the quarter ended Mar 31, 2024, from 124 units in the previous quarter[41] - Value of booked systems was €3,611 million for the quarter ended Mar 31, 2024, down from €9,186 million in the previous quarter[41] Future Outlook - Q2 2024 total net sales expected between €5.7 billion and €6.2 billion, with a gross margin between 50% and 51%[3][4] - 2024 full-year outlook unchanged, with total net sales expected to be similar to 2023[3][4] - ASML's 2025 revenue opportunity modeled between €30 billion and €40 billion, with a gross margin between 54% and 56%[14] - Q2 2024 total net sales are expected to be between €5.7 billion and €6.2 billion, with a gross margin between 50% and 51%[26] - Expected Q2 2024 net sales and gross margin results[45] - Full year 2024 revenue and gross margin expectations[45] - Revenue and gross margin opportunities for 2025 and 2030[45] Costs and Expenses - Q1 2024 R&D costs of around €1,070 million and SG&A costs of around €295 million[4] - Q2 2024 R&D costs are projected to be around €1,070 million, and SG&A costs around €295 million[26] - 2024 estimated annualized effective tax rate is expected to be between 16% and 17%[26] Cash Flow and Shareholder Returns - ASML expects to return significant cash to shareholders through growing dividends and share buybacks, with €400 million worth of shares repurchased in Q1 2024[5][14] - Q1 2024 free cash flow was €194 million[31] - ASML intends to declare a total dividend for 2023 of €6.10 per ordinary share, with a final dividend proposal of €1.75 per share[24] - Share repurchase program and dividend growth plans[45] Balance Sheet and Assets - Q1 2024 shareholders' equity as a percentage of total assets was 27.8%[37] - Cash and cash equivalents increased to €7,004.7 million from €5,100.8 million[38] - Cash and cash equivalents decreased from €7,004.7 million in Dec 31, 2023 to €5,100.8 million in Mar 31, 2024, a decrease of 27.2%[42] - Inventories increased from €8,850.7 million in Dec 31, 2023 to €9,864.5 million in Mar 31, 2024, an increase of 11.5%[42] - Total assets decreased from €39,957.5 million in Dec 31, 2023 to €39,042.6 million in Mar 31, 2024, a decrease of 2.3%[42] - Short-term investments increased significantly from €5.4 million in Dec 31, 2023 to €305.3 million in Mar 31, 2024[42] Operational Metrics - ASML shipped 66 new lithography systems and 4 used lithography systems in Q1 2024[4] - ASML shipped its first NXE:3800E system in Q1 2024, featuring new multiplatform technologies for higher throughput and stability[18] - Number of payroll employees in FTEs increased to 40,940 in the quarter ended Mar 31, 2024, from 40,310 in the previous quarter[41] - Number of temporary employees in FTEs decreased to 1,773 in the quarter ended Mar 31, 2024, from 2,107 in the previous quarter[41] Cash Flow Activities - Net cash used in operating activities was €251.9 million for the quarter ended Mar 31, 2024, compared to net cash provided by operating activities of €3,197.0 million in Dec 31, 2023[43] - Purchase of property, plant and equipment was €417.3 million for the quarter ended Mar 31, 2024, a decrease of 28.5% compared to €584.0 million in Dec 31, 2023[43] - Net cash used in financing activities was €927.4 million for the quarter ended Mar 31, 2024, compared to €545.1 million in Dec 31, 2023[43] Liabilities - Total current liabilities decreased from €16,274.7 million in Dec 31, 2023 to €15,048.7 million in Mar 31, 2024, a decrease of 7.5%[42] Risks and Challenges - Expected impact of export control policies and regulations[45] - Risks related to semiconductor industry demand and capacity[45] - Impact of macroeconomic uncertainty on the semiconductor industry[45] - Risks associated with supply chain constraints and logistics[45] Strategic Plans - Plans to increase production capacity[45] - Expected performance and capabilities of new systems[45] Financial Reporting - The financial statements are prepared in accordance with US GAAP and should be read in conjunction with the 2023 Annual Report[44]