ASML shares moved lower despite the company's first-quarter earnings beating expectations as broader concerns over the outlook for the semiconductor market weighed on the stock.
Before the opening bell in New York on Wednesday, the Dutch chipmaker reported revenue of €6.7 billion for the quarter ended March, above the expected range of €6.1 billion to €6.5 billion.
The company also beat on profit which came in at €2 billion or earnings per share of €4.96. Analysts had forecast a profit of €1.62 billion for the quarter.
However, the company’s stock slipped on investor concerns about demand for chips, with ASML CEO Peter Wennink flagging “mixed signals” from different end-market segments.
“Some major customers are making further adjustments to demand timing while we also see other customers absorbing this demand change, particularly in DUV at more mature nodes,” he said in a statement.
For the second quarter, ASML forecast revenue between €6.5 billion and €7 billion. For the full-year 2023, its sales growth expectations are unchanged.
“For 2023, ASML expects continued strong growth with a net sales increase of over 25% and a slight improvement in gross margin, relative to 2022,” Wennink said.
ASML shares had slipped 2.7% to US$625.85 in pre-market trading on Wednesday. Its Amsterdam-listed shares had fallen 2.6% at €573.40.
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