ASML Holdings (ASML) Misses Q3 EPS, Net Bookings Well Short of Estimates
ASML Holdings (NASDAQ: ASML) reported Q3 EPS of EUR5.28, EUR0.12 worse than the analyst estimate of EUR5.40. Revenue for the quarter came in at EUR7.47 billion versus the consensus estimate of EUR7.9 billion.
- Q3 total net sales of €7.5 billion, gross margin of 50.8%, net income of €2.1 billion
- Quarterly net bookings in Q3 of €2.6 billion2 of which €1.4 billion is EUV (estimate was €5.39 billion)
- ASML expects Q4 2024 total net sales between €8.8 billion and €9.2 billion, and a gross margin between 49% and 50%
- ASML expects 2024 total net sales of around €28 billion
- ASML expects 2025 total net sales to be between €30 billion and €35 billion, with a gross margin between 51% and 53%
CEO statement and outlook
"Our third-quarter total net sales came in at €7.5 billion, above our guidance, driven by more DUV and Installed Base Management1 sales. The gross margin came in at 50.8%, within guidance.
"While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness. Regarding Logic, the competitive foundry dynamics have resulted in a slower ramp of new nodes at certain customers, leading to several fab push outs and resulting changes in litho demand timing, in particular EUV. In Memory, we see limited capacity additions, with the focus still on technology transitions supporting the HBM and DDR5 AI-related demand.
"We expect fourth-quarter total net sales between €8.8 billion and €9.2 billion with a gross margin between 49% and 50% which includes the recognition of the first two High NA systems upon customer acceptance, reflecting progress on imaging, overlay and contrast. ASML expects R&D costs of around €1.1 billion and SG&A costs of around €300 million. We expect full-year 2024 total net sales of around €28 billion. Based on the recent market dynamics as mentioned above, we expect our 2025 total net sales to grow to a range between €30 billion and €35 billion, which is the lower half of the range that we provided at our 2022 Investor Day. We expect a gross margin between 51% and 53%, which is below the range we then provided, mainly related to the delayed timing of EUV demand," said ASML President and Chief Executive Officer Christophe Fouquet.
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