Overview of Q3 Financial Results
ASML reported strong financial results for the third quarter, achieving total net sales of €7.5 billion. This figure not only surpassed the company’s previous guidance but also reflected robust demand for advanced technology, particularly in deep ultraviolet (DUV) lithography and installed base management sales. The gross margin stood at an impressive 50.8%, showcasing ASML’s ability to maintain profitability amid evolving market conditions.
Quarterly Highlights
In Q3, ASML’s net income reached €2.1 billion, alongside quarterly net bookings of €2.6 billion, of which €1.4 billion pertained to extreme ultraviolet (EUV) systems. This balance indicates a sustained interest in ASML’s cutting-edge technologies, even as the broader semiconductor market remains cautious. The company’s outlook suggests a revenue forecast for Q4 2024 between €8.8 billion and €9.2 billion, with a gross margin anticipated between 49% and 50%.
Looking Ahead: Projections for 2024 and Beyond
ASML projects total net sales of approximately €28 billion for the year 2024, with optimistic estimates suggesting growth to between €30 billion and €35 billion in 2025. The expected gross margin could improve, projected between 51% and 53%. However, during the CEO’s statement, caution was advised due to slower recovery rates in various market segments outside of artificial intelligence (AI). The competitive dynamics within the logic segment are leading to several adjustments in demand timings, particularly impacting EUV lithography. In the memory sector, additions to capacity remain limited as companies focus on transitioning to new technologies like high bandwidth memory (HBM) and DDR5, which are in alignment with growing AI requirements.
