ASML Stock Dips On Weak Q1 Results, Bookings

(RTTNews) - Shares of ASML Holding N.V. were losing around 4 percent in the morning trading in Amsterdam as well as in pre-market activity on the Nasdaq Stock Exchange after the Dutch semiconductor equipment maker reported Wednesday weakness in first-quarter profit, sales and bookings. Further, the company lifted its annual dividend, issued second-quarter outlook, and maintained its fiscal 2024 outlook, expecting flat net sales.

ASML President and Chief Executive Officer Peter Wennink said, "Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, 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."

For the second quarter, ASML expects total net sales between 5.7 billion euros and 6.2 billion euros, and a gross margin between 50 percent and 51 percent. Total net sales for the prior year's second quarter were 6.90 billion euros.

ASML said it intends to declare a total dividend for the year 2023 of 6.10 euros per ordinary share, a 5.2 percent increase compared to 2022. The final dividend proposal to the Annual General Meeting would be 1.75 euros per ordinary share.

In its first quarter, ASML's net income fell to 1.22 billion euros from last year's 1.96 billion euros. Earnings per share were 3.11 euros, down from 4.95 euros a year earlier.

Income before income taxes declined to 1.42 billion euros from 2.22 billion euros a year ago. Gross profit as a percentage of net sales, however, grew to 51 percent from prior year's 50.6 percent.

Net sales were 5.29 billion euros, lower than prior year's 7.24 billion euros. Net system sales fell to 3.97 b illion euros from prior year's 5.34 billion euros. Net service and field option sales also were lower.

Sales of lithography systems were 70 units, down from prior year's 100 units.

Quarterly net bookings totalled 3.61 billion euros, down from 3.75 billion euros last year.

In pre-market activity on the Nasdaq, ASML shares were losing around 4.1 percent to trade at $937.

In Amsterdam, the shares were trading at 872.50 euros, down 4.48 percent.

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