ASML Orders Miss Forecasts as Chip Makers Await Demand Recovery — Update

By Mauro Orru

ASML Holding posted orders below analysts' expectations for the first quarter as chip makers wait for demand to recover before securing key equipment to cover their production needs for the coming months and years.

The Dutch company, which makes equipment for chip makers, said orders slipped to 3.61 billion euros ($3.83 billion) in the three months to the end of March from EUR3.75 billion a year earlier. Analysts had forecast orders of nearly EUR5.10 billion, according to consensus estimates by Visible Alpha.

Sales fell to EUR5.29 billion from EUR6.75 billion, in line with company guidance, but missing analysts' forecasts.

For the current quarter, the group expects sales between EUR5.7 billion and EUR6.2 billion. For the year, sales should be similar to the EUR27.56 billion that ASML reported for 2023.

Net profit declined to EUR1.22 billion from nearly EUR1.96 billion, but it still exceeded analysts' EUR1.09 billion forecast.

Gross profit--a closely watched metric for companies operating in the semiconductor industry--came in at EUR2.70 billion, generating a 51% margin that beat consensus. ASML had forecast a margin of 48% to 49%. For the current quarter, the company is forecasting a gross margin between 50% and 51%.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

April 17, 2024 01:44 ET (05:44 GMT)

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