The Dutch ASML Group surprised market observers with unexpectedly high profits, while sales figures fell short of forecasts. CNBC reported this on Wednesday. Despite a 21.6 percent drop in net sales and a 37.4 percent drop in net profit, the company is sticking to its full-year guidance. Observers expected even larger profit losses. Many investors still make profits.
ASML speaks of 2024 as a “transitional year.”
ASML CEO Peter Wennink said, according to the report: “We view 2024 as a transition year with continued investment in both capacity expansion and technology to be prepared for a shift in the industry, ASML had previously stated that Similar sales are expected for 2024.” like the previous year. In 2023 it was 27.6 billion euros.
Net sales in the first quarter were 5.29 billion euros, compared to the expected 5.39 billion euros. Net profit, on the other hand, reached €1.22 billion, clearly exceeding expectations of €1.07 billion.
Despite the mixed numbers, ASML remained optimistic. Chief Wennink told CNBC: “Our full-year 2024 guidance remains unchanged, and we expect the second half of the year to be stronger than the first, in line with the industry's recovery.”
Sales of ASML machines for chip production increase again
ASML, a world leader in the production of machines needed to make advanced chips, suffered from weak demand for consumer electronics last year, which in turn led to lower sales of ASML products. However, several semiconductor companies, such as memory chip maker Samsung, are seeing this.a recovery in demand.
ASML CFO Roger Dassen expressed his hopes for 2025 in a video interview. Expect the opening of new production facilities and a general rebound in the sector.
Finally, CNBC reports that ASML has not yet addressed the impact of China's export restrictions in the first quarter. Still, the company recorded 49 percent of its total sales in China in the first quarter, up from 39 percent in the fourth quarter of 2023.
ASML reaches a market value of around 340 billion euros
ASML achieved sales of around €27.6 billion in fiscal 2023. This meant that the group was able to increase value by approximately 30 percent compared to the previous year. Its customers include the world's leading chipmakers, such as TSMC.Samsung and Intel.
In recent months, ASML has also been able to greatly increase its stock value. It currently amounts to about 350 billion euros. This is much more than that of the most valuable German company, SAP..