Semiconductor equipment maker ASML Holding NV (NASDAQ:ASML) posted sharper falls in first-quarter bookings than expected, but it expects a rebound in the current quarter and a stronger second half.
New bookings in the first three months of 2024 slumped to €3.6 billion from €9.2 billion in the fourth quarter of last year and below analyst forecasts of around €5.4 billion.
Quarterly net sales totalled €5.3 billion, down from €7.2 billion in the preceding quarter but at the mid-point of management’s previous guidance.
The Netherlands-based group, the third largest company in Europe, has been hit by a downturn in the semiconductor industry and US efforts to widen sanctions on China, though close to half of its system sales were to the People’s Republic.
ASML’s gross margin of 51.0% was only slightly down on the prior quarter’s 51.4% and beat the average forecast of 48.8%, though this was due to one-offs.
Net income fell from €2.05 billion in the final quarter of last year to €1.2 billion, though this was bang in the middle of the company’s guidance.
CEO Peter Wennink, who is stepping down later this month to be replaced by the group’s chief business officer Christophe Fouquet, said the outlook for the full year remained unchanged.
"We expect second-quarter total net sales between €5.7 billion and €6.2 billion with a gross margin between 50% and 51%.”
He said the full year should be boosted as the second half of the year is expected to be stronger than the first, “in line with the industry's continued recovery from the downturn”.
“We see 2024 as a transition year with continued investments in both capacity ramp and technology, to be ready for the turn in the cycle.”