US Stock Market News | Third-quarter revenue guidance falls short of analysts' expectations, ASML drops nearly 11%

Zhitong
2024.07.17 15:13
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On Wednesday, ASML's stock price fell, with the stock down nearly 11% to $951.4 as of the time of writing. This marks the largest single-day decline since March 18, 2020. ASML's second-quarter earnings and sales exceeded expectations, with new order volume higher than the first quarter, but the company's third-quarter revenue guidance fell short of analysts' expectations. In the second quarter, ASML's sales were €6.24 billion, compared to €5.29 billion in the same period last year, with a market value expected to be €60.25 billion; net profit was €1.578 billion, compared to €1.224 billion in the same period last year; basic earnings per share were €4.01, compared to €3.11 in the same period last year; and the gross margin was 51.5%, higher than expected. New orders in the second quarter amounted to €5.57 billion, a year-on-year increase of over 24%, far exceeding analysts' expectations of €4.41 billion. Of this, €2.5 billion was for EUV lithography machines. ASML expects third-quarter sales to be between €6.7 billion and €7.3 billion, below analysts' expectations of €7.46 billion; the third-quarter gross margin is expected to be between 50% and 51%; and research and development costs are expected to be around €1.1 billion, with sales, general, and administrative expenses around €295 million

According to the information from Zhitong Finance APP, on Wednesday, ASML.US's stock price fell, with the stock dropping nearly 11% to $951.4 as of the time of publication. This marks the largest single-day decline since March 18, 2020. Although ASML's second-quarter earnings and sales exceeded expectations, with new orders higher than the first quarter, the company's third-quarter revenue guidance fell short of analysts' expectations.

In the second quarter, ASML's sales were 6.24 billion euros, compared to 5.29 billion euros in the same period last year, exceeding the market's expectation of 6.025 billion euros. Net profit was 1.578 billion euros, up from 1.224 billion euros in the same period last year, with basic earnings per share of 4.01 euros, compared to 3.11 euros in the same period last year, and a gross margin of 51.5%, higher than expected. New orders in the second quarter amounted to 5.57 billion euros, a year-on-year increase of over 24%, significantly surpassing analysts' expectations of 4.41 billion euros, with 2.5 billion euros attributed to EUV lithography machines.

ASML expects third-quarter sales to be between 6.7 billion euros and 7.3 billion euros, falling short of analysts' expectations of 7.46 billion euros. The company also forecasts a third-quarter gross margin of 50% to 51%, with research and development costs estimated at around 1.1 billion euros and sales, general, and administrative expenses at approximately 295 million euros

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