ASML reports €7.5 billion total net sales and €2.1 billion net income in Q3 2024

[GFreeman]

Today, ASML Holding NV (ASML) has published its 2024 third-quarter results.

• Q3 total net sales of €7.5 billion, gross margin of 50.8%, net income of €2.1 billion
• Quarterly net bookings in Q3 of €2.6 billion of which €1.4 billion is EUV
• ASML expects Q4 2024 total net sales between €8.8 billion and €9.2 billion, and a gross margin between 49% and 50%
• ASML expects 2024 total net sales of around €28 billion
• ASML expects 2025 total net sales to be between €30 billion and €35 billion, with a gross margin between 51% and 53%

CEO statement and outlook
"Our third-quarter total net sales came in at €7.5 billion, above our guidance, driven by more DUV and Installed Base Management sales. The gross margin came in at 50.8%, within guidance. While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness. Regarding Logic, the competitive foundry dynamics have resulted in a slower ramp of new nodes at certain customers, leading to several fab push outs and resulting changes in litho demand timing, in particular EUV. In Memory, we see limited capacity additions, with the focus still on technology transitions supporting the HBM and DDR5 AI-related demand."



"We expect fourth-quarter total net sales between €8.8 billion and €9.2 billion with a gross margin between 49% and 50% which includes the recognition of the first two High NA systems upon customer acceptance, reflecting progress on imaging, overlay and contrast. ASML expects R&D costs of around €1.1 billion and SG&A costs of around €300 million. We expect full-year 2024 total net sales of around €28 billion. Based on the recent market dynamics as mentioned above, we expect our 2025 total net sales to grow to a range between €30 billion and €35 billion, which is the lower half of the range that we provided at our 2022 Investor Day. We expect a gross margin between 51% and 53%, which is below the range we then provided, mainly related to the delayed timing of EUV demand," said ASML President and Chief Executive Officer Christophe Fouquet.

Update dividend and share buyback program
An interim dividend of €1.52 per ordinary share will be made payable on November 7, 2024.

In the third quarter, we did not purchase any shares under the current 2022-2025 share buyback program.

Details of the share buyback program as well as transactions pursuant thereto, and details of the dividend are published on ASML's website.

Quarterly video interview and investor call
With this press release, ASML has published a video interview in which CFO Roger Dassen discusses the 2024 third-quarter results and outlook for 2024 and 2025. This video and the transcript can be viewed on our website.

An investor call for both investors and the media will be hosted by CEO Christophe Fouquet and CFO Roger Dassen on October 16, 2024 at 15:00 Central European Time / 09:00 US Eastern Time. Details can be found on our website.



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[MacZ]

Let's not mention the fact that net bookings fell short of expectations (50% short)

Yahoo finance

Stuff happens when you flip off a customer that was 49% of your sales.

 

[Nhonho]

Stuff happens when you flip off a customer that was 49% of your sales.

Which customer was this that represented 49% of sales?

 

[MacZ]

Which customer was this that represented 49% of sales?

China

 

[Visible Noise]

Let's not mention the fact that net bookings fell short of expectations (50% short)

Yahoo finance

Stuff happens when you flip off a customer that was 49% of your sales.

Yes, they should just ignore international treaties

 

[MacZ]

Yes, they should just ignore international treaties

Well, no.

But if they expected to sell, say, 200 lithography machines and sell only 100, you may expect prices of those machines, and what comes out of these machines, to go up.

Also, it may come to the point that producing these machines just may not be feasible from an economy of scale point of view.

Also, China will produce lithography machines of their own that will eventually compete with those of ASML, furthering its problems.

Just a heads up.

 

[mb194dc]

Massive overcapacity building I think. Demand is awful at the front other than for perma loss making LLMs. Wouldn't surprise me if 2025 revenue came in low.

 

[Gungar]

Well, no.

But if they expected to sell, say, 200 lithography machines and sell only 100, you may expect prices of those machines, and what comes out of these machines, to go up.

Also, it may come to the point that producing these machines just may not be feasible from an economy of scale point of view.

Also, China will produce lithography machines of their own that will eventually compete with those of ASML, furthering its problems.

Just a heads up.

They can't even compete with TSMC and you think they are going to compete with ASML? except with intellectual property theft i don't see how.

 

[MacZ]

They can't even compete with TSMC and you think they are going to compete with ASML? except with intellectual property theft i don't see how.

I think that because until recently, they didn't think they would need to compete with TSMC or ASML. They were just content buying from them.

Then someone looked and saw that they overcame everybody in pretty every much domain (exceptions being chips production and landing rockets ... also quantum computing but that has no utility now).

So, since it was not possible to compete, it was decided that China would be sanctioned to hinder them.

And now China has started to build its own capacities.

It's not that they can't. It's that until now it wasn't necessary.

 

[LittleBro]

Next year won't be so positive, I guess, due to embargo on exports to China.

There are some disturbances present right now:

 

[Aleksandar_038]

Yes, they should just ignore international treaties

Which internationak treaties? International include a bit more than USA, which is about to became clear to everyone in next decade...