SKU: ASML Category:


ASML had a highly disappointing quarter and failed to meet the revenue expectations as well as earnings expectations of analysts. The company reported net sales of EUR 6.7 billion, coming in at the midpoint of their guidance. They shipped 10 EUV systems, recognizing EUR 1.9 billion in revenue. Gross margin for the quarter was 51.9%, above their guidance, driven by product mix and cost effects. However, there are challenges ahead as customers remain cautious in the current market environment. Looking ahead to the fourth quarter and 2024, ASML expects moderate growth due to global macro concerns, lower GDP growth, and geopolitical issues. They anticipate net sales to be between EUR 6.7 billion and EUR 7.1 billion in Q4, with installed base management sales around EUR 1.4 billion. Gross margin is expected to be between 50% and 51%, with the positive impact of higher sales volume offset by the change in product mix and one-off effects. ASML also expects 2024 to be a transition year as they prepare for significant growth in 2025. In terms of the business outlook, ASML anticipates growth in deep ultraviolet (DPUV) revenue, primarily driven by an increase in immersion revenue, but expects intellectual extreme ultraviolet (EUV) revenue to grow by around 25%. However, geopolitical factors, such as export controls, could impact the regional split of shipments in the medium to long term. ASML’s management remains confident in its long-term prospects as it prepares for future growth driven by secular growth drivers, increased lithography on future technology nodes, and the construction of new fabs worldwide. However, the timing and slope of the recovery in the industry remain uncertain, and customers’ cautious approach may impact ASML’s business in the near term.

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⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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