ASML reports Q3 revenue up 15.5% YoY to €6.67B, vs. €6.71B est., net profit up 11% YoY to €1.89B, vs. €1.8B est., and forecasts flat 2024 revenue growth
- ASML reported a profit decline in the third quarter, but beat estimates as it forecast 2024 revenue will be flat.
CNBCArjun Kharpal
Context & Ripple Effects
ASML entered Q3 after two quarters of unusually strong year-on-year growth: Q1 revenue rose 91% and Q2 revenue rose 28%. The new outlook marks a sharp moderation from that 2023 run-rate rather than a collapse in reported sales.
Profit beat expectations, but revenue narrowly missed and the company projected no 2024 sales growth. That combination shifts attention from quarterly execution to the timing of customers' equipment spending.
First-order effects
ASML's 2024 planning baseline becomes stable revenue rather than continued growth, despite Q3 revenue and profit increasing from a year earlier.
Investors immediately reassess the earnings trajectory: the shares fell more than 7% after results, reflecting the weaker near-term growth signal.
Second-order effects
Chipmakers and other ASML tool customers have less reason to assume an expanding near-term equipment supply cycle; their order timing becomes more consequential for ASML's sales mix and visibility.
The report points to a contracted semiconductor-equipment cycle in which strong individual quarters can coexist with a flat annual spending outlook, making supplier results more sensitive to customers' capex timing.
If this pattern persists, valuation and planning across the equipment chain may rely less on headline quarterly growth and more on backlog, orders and the pace of capacity commitments.
The trend: This is one data point in the shift from a rapid semiconductor-equipment expansion to a more order-driven, uneven capex cycle.
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#ASML, Europe's most valuable #technology company, is down today on #earnings and declining #orders. But the company also reported that in Q3, 46%(!), nearly half, of its sales came from #China. With the pressure on leading technology companies building not to sell to China - a..…
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BREAKING: $ASML reports €6.7 billion net sales and €1.9 billion net income in Q3 2023; ASML confirms its expectation to grow towards 30% in 2023 https://www.asml.com/...
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