ASML Shares Plummet Following Early Earnings Release

Shares of ASML, the Dutch semiconductor giant, suffered a significant decline on Wednesday after the company inadvertently released its third-quarter earnings ahead of schedule. This early disclosure highlighted a reduced sales forecast for 2025 and disappointing results in order bookings, causing investors to react sharply.

Originally, ASML planned to unveil its financial results early Wednesday morning. However, Dutch business radio BNR reported that it appeared ASML itself may have accidentally made its figures public before the official announcement. Soon after, the company confirmed the premature release of information.

ASML issued a statement explaining, "Due to a technical error, information relating to our Q3 2024 results was erroneously published earlier today on part of our website." This unexpected situation led to a rapid dive in ASML's share price.

The stock fell by 15.64%, closing at 668.10 euros on the AEX index, a blue-chip stock exchange in Amsterdam. The company’s report indicated that net orders dropped significantly, from 5.56 billion euros ($6.06 billion) in the second quarter to just 2.63 billion euros in the third quarter.

Christophe Fouquet, ASML's CEO, remarked on the company’s outlook, stating, "Based on the recent market dynamics, we expect our 2025 total net sales to range between 30 billion and 35 billion euros, which is the lower half of the range we provided at our 2022 Investor Day." He also mentioned a projected gross margin between 51% and 53%, which is lower than previous forecasts due to delays in extreme ultraviolet (EUV) demand.

ASML is known for producing highly specialized EUV lithography machines that are essential in semiconductor fabrication. In September, the Dutch government announced support for stricter export controls on these advanced machines, particularly regarding sales outside the EU and to China, further complicating market expectations.

According to Javier Correonero, an equity analyst at Morningstar, the recent decline in ASML's share value has created a potential investment opportunity. He noted, "ASML’s shares are undervalued after the selloff, despite a revised revenue forecast of EUR 30 to 35 billion for 2025, which aligns with the lower end of management’s target. There is still significant upside potential, although some segments of the market are recovering more slowly than anticipated."

In its financial report, ASML announced that sales increased from 6.32 billion euros to 7.46 billion euros, while net profit rose from 1.5 billion euros to 2.077 billion euros. Fouquet acknowledged the current market situation, saying, "While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. The recovery now seems more gradual than expected and is likely to continue into 2025, which has made customers more cautious."

ASML, Shares, Earnings