ASML Holdings (NASDAQ:ASML) experienced a 7% intra-day drop in its shares following the announcement of first-quarter sales for fiscal 2024 that did not meet expectations. The company reported net sales of 5.29 billion euros, which fell short of the expected 5.39 billion euros. However, its net profit reached 1.22 billion euros, surpassing the forecasted 1.07 billion euros.
Year-over-year comparisons show a 21.6% decrease in net sales and a significant 37.4% reduction in net income. A notable concern was the net bookings for ASML’s equipment, a critical indicator of future revenues, which totaled 3.61 billion euros. This figure represents a 4% decrease from the previous year and a significant decline from the prior quarter, falling well below the expected 4.63 billion euros.
Despite these challenges, ASML maintained its annual sales forecast at 27.6 billion euros, the same as the previous year, and anticipates stronger performance in the second half of 2024, aligning with the broader industry recovery from the downturn. CEO Peter Wennink described 2024 as a transitional year, emphasizing ongoing investments in capacity ramp-up and technology to prepare for an anticipated market upturn.
ASML also highlighted the necessity to secure around 4 billion euros in orders each subsequent quarter to achieve its 35 billion euros revenue goal for the year, indicating the company’s strategic focus on meeting these targets amidst current challenges.