ASML Shares Hit On Weak Profit, Bookings In Q1, Tariff Uncertainty

ASML

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(RTTNews) - Shares of ASML Holding N.V. were losing around 5 percent in the morning trading in Amsterdam as well as around 4 percent in the pre-market activity on the Nasdaq Stock Exchange, after the Dutch semiconductor equipment maker reported Wednesday lower profit and revenues in its first quarter, along with weak net bookings, despite margin growth. Further, the company projects increased uncertainty due to recent tariff announcements.

Further, the company declared higher dividend for the year. ASML also issued second-quarter outlook, and maintained fiscal 2025 view, expecting sales growth in both periods.

ASML President and Chief Executive Officer Christophe Fouquet said, "Our conversations so far with customers support our expectation that 2025 and 2026 will be growth years. However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while. As previously shared, artificial intelligence continues to be the primary growth driver in our industry. It has created a shift in the market dynamics that benefits some customers more than others, contributing to both upside potential and downside risks as reflected in our 2025 revenue range."

ASML said it intends to declare a total dividend for the year 2024 of 6.40 euros per ordinary share, a 4.9 percent increase compared to 2023. The final dividend proposal to the Annual General Meeting would be 1.84 euros per ordinary share.

For the second quarter, ASML expects total net sales between 7.2 billion euros and 7.7 billion euros, and a gross margin between 50 percent and 53 percent.

In the prior year's second quarter, the company recorded total net sales of 6.24 billion euros, and a gross margin of 51.5 percent.

Further, ASML continues to expect 2025 total net sales to be between 30 billion euros and 35 billion euros, with a gross margin between 51 percent and 53 percent.

In 2024, the company achieved total net sales of 28.3 billion euros, and a gross margin of 51.3 percent.

In its first quarter, net income declined to 2.36 billion euros from last year's 2.69 billion euros. Earnings per share were 6 euros, down from 6.85 euros a year earlier.

Gross margin, however, grew to 54 percent from prior year's 51.7 percent.

Total net sales declined to 7.74 billion euros from prior year's 9.26 billion euros. Installed Base Management sales dropped to 2 billion euros from 2.15 billion euros a year ago.

In the quarter, the company sold 73 units of new lithography systems, lower than 119 units last year. Used lithography systems sold were 4 units, down from prior year's 13 units.

Quarterly net bookings were 3.94 billion euros, sharply lower than prior year's 7.09 billion euros.

In pre-market activity on the Nasdaq, ASML shares were losing around 4.4 percent to trade at $653.31.

In Amsterdam, ASML shares were trading at 575.90 euros, down 4.5 percent.

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