Overnight Trading | ASML's performance falls short of expectations, plunging 12% at one point, Nvidia also hit

ASML, the leader in lithography machines, released its first-quarter performance report for 2024. In the first quarter, ASML's net sales were 5.29 billion euros, slightly below the expected 5.47 billion euros. The stock price fell during after-hours trading, experiencing a flash crash and currently down over 7%:

Key Data

• Total net sales in the first quarter were 5.3 billion euros, with a gross margin of 51.0% and a net profit of 1.2 billion euros.
• Net orders in the first quarter amounted to 3.6 billion euros, with EUV orders in Europe totaling 656 million euros.
• ASML expects total net sales in the second quarter of 2024 to be between 5.7 billion euros and 6.2 billion euros, with a gross margin between 50% and 51%.
• ASML anticipates that total net sales in 2024 will be similar to 2023.

Comparison between the first quarter and the fourth quarter of last year:

CEO Statement and Outlook

"Our total net sales in the first quarter were 5.3 billion euros, within the mid-range of our guidance, with a gross margin of 51.0%, higher than the guidance range, primarily driven by product mix and one-time factors.

"We expect total net sales in the second quarter to be between 5.7 billion euros and 6.2 billion euros, with a gross margin between 50% and 51%. ASML expects R&D costs to be around 1.07 billion euros and sales and management costs to be around 295 million euros. We maintain our outlook for the full year 2024, expecting a stronger second half than the first half, in line with the industry's continued recovery trend from the trough. We view 2024 as a transitional year, continuing to invest in capacity expansion and technology." ASML President and CEO Peter Wennink stated, "Preparing for the shift in the cycle."

Stock Repurchase Plan and Dividend Proposal

ASML plans to announce a total dividend per ordinary share of 6.10 euros for 2023, a 5.2% increase from 2022. Taking into account the three mid-term dividends of 1.45 euros per ordinary share paid in 2023 and 2024, this leads to a final dividend proposal of 1.75 euros per ordinary share to be presented at the shareholders' meeting.

In the first quarter, we purchased approximately 400 million euros worth of shares under the current 2022-2025 share buyback program.

Performance of Other Semiconductor Stocks in After-Hours Trading

NVIDIA was initially up 0.8% but later fell to 0.2% during after-hours trading:

AMD's trend is similar to NVIDIA's:

While TSMC, Samsung, and Intel, as ASML's largest customers, have less impact:

Samsung in South Korea is currently in the opening stage:

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Risk Warning

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