ASML Holding (NASDAQ:ASML) (DE:ASMF) shares plunged by nearly 4% in the early trading session today. This drop followed the Dutch advanced semiconductor equipment maker reporting lower profits and disappointing orders for the first quarter.
ASML’s Weak Numbers
During the quarter, revenue declined by ~21% year-over-year to €5.3 billion. ASML sold 66 new lithography systems in Q1, compared to 113 units in the fourth quarter. Additionally, net bookings dropped to €3.6 billion from €9.2 billion in Q4. The company’s gross profit declined to €2.7 billion from €3.7 billion in Q4. In sync, its EPS contracted to €3.11 from €5.21 in Q4.
Gearing Up for Growth
ASML continues to invest in capacity ramp-up and technology. Peter Wennink, the president and CEO of the company, noted that ASML sees 2024 as a transition year as the semiconductor equipment supplier gears up for the industry’s recovery from a downturn. For the upcoming quarter, ASML foresees net sales in the range of €5.7 billion to €6.2 billion. Furthermore, the company plans to declare a total dividend of €6.10 per share for the full year 2023.
What Is the Price Prediction for ASML?
Today’s price decline comes after a nearly 54% jump in ASML’s share price over the past year. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average ASML price target of $1069.40. However, analysts’ views on the stock could see a revision following today’s earnings report.
Read full Disclosure
