A Mixed Bag of Expectations
ASML, Europe’s largest tech firm, is set to report its second-quarter earnings before the European markets open on Wednesday. Analysts are expecting a decline in sales during the quarter, despite a positive long-term outlook.
Orders from TSMC in Focus
The company’s largest customer, TSMC, is a key factor in ASML’s quarterly results. Orders from TSMC, which is a primary supplier to Apple, are expected to continue declining, which could impact ASML’s sales. However, analysts expect bookings to pick up in the third quarter, boosting the company’s full-year guidance.
Key Metrics to Watch
Analysts anticipate that ASML will report net machinery bookings of €5.04 billion in the second quarter, up 12% from the same quarter last year. Net sales are expected to be €6.08 billion, a 12% decline from the same quarter last year. The company’s gross profit margin is expected to be around 50.6%, with a net income of €1.2 billion.
China’s Impact on Sales
China has been a significant market for ASML, accounting for 49% of its overall revenue in the first quarter. However, sales in China may be affected by US export restrictions aimed at curbing China’s ability to advance technology for military use. The company’s service segment, which includes servicing and maintenance of its equipment, is expected to perform well and bolster the company’s overall revenue.
Long-Term Prospects Look Promising
Despite the current challenges, ASML’s technological advancements and unique services have a positive outlook for the long term. The company’s CEO and CFO have expressed optimism for the full year 2024 and 2025, respectively. With its strong position in the semiconductor industry and continued demand for its products, ASML is expected to continue its growth trajectory in the long term.
SOURCE: Ref Image from XM
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.