ASML shares plunge 15% as Q3 net bookings miss estimates, outlook disappoints

ASML Holding (AS:ASML) shares plunged more than 15.6% Tuesday after the semiconductor equipment maker reported third-quarter results that fell short of analyst expectations, while its guidance disappointed investors.

More specifically, the stock was impacted by the company’s Q3 net bookings miss and FY revenue guidance.

ASML posted Q3 adjusted earnings of €5.28 per share, missing the consensus estimate of €5.40. Revenue came in at €7.47 billion, below the expected €7.9 billion but up 19.6% YoY. The company’s quarterly net bookings of €2.6 billion significantly missed estimates of €5.39 billion.

For the fourth quarter, ASML expects revenue between €8.8 billion and €9.2 billion, with a gross margin of 49% to 50%. The company expects its full-year 2024 revenue forecast to be around €28 billion.

Looking ahead to 2025, ASML projects revenue of €30 billion to €35 billion, the lower half of its previous guidance range, with gross margins of 51% to 53%, below prior expectations.

CEO Christophe Fouquet cited a more gradual market recovery than anticipated, stating, “While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover.”

The company noted slower ramps of new nodes at certain customers in the Logic segment, leading to fab push-outs and changes in lithography demand timing, particularly for EUV systems. In Memory, ASML sees limited capacity additions, with a focus on AI-related technology transitions.

ASML declared an interim dividend of €1.52 per share, payable on November 7, 2024.

Elsewhere, names such as Nvidia (NASDAQ:NVDA) (-4%) and AMD (NASDAQ:AMD) (-4.2%) have also declined following the ASML release.

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