Source: Wall Street View, author: Zhao Yuhe.
ASML Holding's net sales in the third quarter were 7.47 billion euros, with analysts expecting 7.17 billion euros. Orders in the third quarter were 2.63 billion euros, compared to analysts' expectations of 5.39 billion euros. Net sales for the full year are expected to be 28 billion euros, with analysts expecting 27.71 billion euros. Nvidia fell by 5.7%, marking its worst intraday performance since September 6th.
Dutch optical technology giant Philips $ASML Holding (ASML.US)$ On Tuesday, the third-quarter financial report showed that while revenue exceeded expectations, orders were only half of the market's expectations, leading to a lowered sales target for next year, causing a sharp drop of nearly 17% in ASML's American Depositary Receipts (ADRs). The semiconductor sector collectively experienced a slump, with the Philadelphia Semiconductor Index dropping by about 4.5% at one point, and Nvidia plunging by over 6% at one point, marking its worst intraday performance since September 6th.
Key financial data:
Net sales: Net sales in the third quarter were 7.47 billion euros, a 20% increase from the previous quarter, with analysts expecting 7.17 billion euros.
Order volume: The third-quarter orders were 2.63 billion euros, a 53% decrease from the previous quarter, with analysts expecting 5.39 billion euros.
Gross margin: The gross margin in the third quarter was 50.8%, with analysts expecting 50.7%.
Net income: 2.08 billion euros, a 32% increase from the previous quarter, with an expected 1.91 billion euros.
Cash / money market and other: 4.99 billion euros, down 0.7% month-on-month, expected 4.86 billion euros.
Performance guidance:
Net sales for the full year: Expected net sales for the full year of 28 billion euros, with analysts expecting 27.71 billion euros.
Q4 net sales: Expected net sales for the fourth quarter to be 8.8 billion-9.2 billion euros, with analysts anticipating 8.95 billion euros.
Q4 gross margin: Expected gross margin for the fourth quarter to be 49%-50%, with analysts expecting 50.5%.
Next year's net sales: Expected net sales for 2025 to be between 30 billion and 35 billion euros, at the lower end of the analyst's estimated range, with analysts expecting 35.94 billion euros.
Next year's gross margin: Expected gross margin for 2025 to be between 51%-53%, the company originally expected around 54%-56%.
ASML President and CEO Christophe Fouquet said in a statement,
"While the AI sector continues to show strong growth and potential, the recovery time for other market sectors is longer. The recovery appears to be more gradual than previously expected. This situation is expected to continue into 2025, leading to customers being more cautious. In terms of logic chips, the dynamics of competitive wafer manufacturing have led to slower expansion rates for certain customers' new nodes, resulting in multiple wafer fabs delaying and causing changes in lithography demand timing, especially in terms of EUV. In the memory sector, we see limited new capacity additions, with the focus remaining on technology transitions to support the demand for HBM and DDR5 related to AI."
Some media analysts suggest that ASML's performance has been affected by export control policies. Last month, the Netherlands introduced new export control rules requiring ASML to apply for export licenses to The Hague instead of the United States, to export some older machine equipment. Prior reports indicated that the Dutch government would limit ASML's ability to service and maintain its semiconductor equipment in China.
After the financial report was released, ASML's American Depositary Receipt (ADR) stocks plummeted nearly 17%, and the company's stock on the Amsterdam stock market plummeted 15%, leading to a temporary halt in trading. Since reaching a historical high in July, the company's stock price has since dropped by 30%.
Editor/Lambor
