Why ASML Stock Fell Today

Shares of ASML (NASDAQ:ASML) plunged today after the leading semiconductor lithography equipment maker accidentally released its earnings results earlier than planned this morning, disappointing the market with the news.

As a result, the stock fell 16.4% as of 12:01 p.m. ET.

ASML revises its forecast for 2025

ASML delivered solid results in the third quarter with revenue of 7.47 billion euros, which equated to $8.14 billion, above estimates of $7.82 billion.

This figure represents 11.2% growth over the same quarter last year and 19.6% growth over the second quarter. This shows that the company is recovering from a previous lull in purchases, ahead of an expected rebound next year.

The company sold 106 lithography systems in the quarter, up from 89 in the second quarter, and posted solid bottom line growth as earnings per share (EPS) rose to 5.28 euros, compared to 4.01 euros in the second quarter. That represented earnings per share of $5.75, compared with $5.27 in the year-ago quarter and beat estimates of $5.33.

CEO Christophe Fouquet said net sales in the quarter were above forecasts, “driven by more DUV (deep ultraviolet machines) and installed base management sales.” The installed base management segment primarily refers to service.

However, the company revised its forecast for 2025, as Fouquet said:

What it means for ASML

This slowdown appears to be due to customer challenges Intel and Samsung, both of which have recently scaled back foundry investments.

The company forecast fourth-quarter sales of 8.8 to 9.2 billion euros, but its 2025 forecast of 30 to 35 billion euros was below consensus at 36.3 billion euros.

This forecast understandably disappointed investors, although it reflects market conditions rather than ASML's competitive position. With that in mind, this appears to be a buying opportunity for patient investors.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool recommends Intel and recommends the following options: Short November 2024 $24 Calls on Intel. The Motley Fool has a disclosure policy.

Why ASML Stock Plunged Today was originally published by The Motley Fool