- Semiconductor equipment maker ASML reported orders well below forecast and the company warned that its sales would remain flat in 2024.
- Third-quarter bookings were just over the half of what analysts had expected.
- The company said its customers were cautious, even as its executives were optimistic that the chip sector could rebound.
The European giant of technology ASML Holding NV (ASML) reported far fewer orders than expected and warned of slowing sales in 2024 as customers spend less.
The semiconductor equipment manufacturer based in the Netherlands recorded bookings in the third quarter of fiscal 2023 of 2.6 billion euros ($2.74 billion), well below estimates of 4.5 billion 39;euros ($4.75 billion).
CEO Peter Wennink said customers “continue to be uncertain about the shape of the demand recovery” in the chip industry. He said that for this reason, the company expects 2024 “to be a year of transition.”
CFO Roger Dassen added that customers are very cautious. on their liquidity and capital expenditures, as well as on the placing of orders. ASML now expects sales in 2024 to be flat compared to 2023, while analysts had expected a 7% increase.
However, Wennink remained optimistic, saying the industry is “currently going through the bottom of the cycle” and that customers expect the “inflection point” to become clear by the end of this year. He believes the company will experience “significant growth”; in 2025.
ASML has published earnings of 4.81 euros ($5.07), more than expected, while revenue of 6.7 billion euros ($7.07 billion) was essentially in line with forecasts .
New York Register Actions ASML Holding NV lost ground and was down more than 4% as of midday ET on Wednesday, but remained in positive territory for 2023.
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