ASML Posts €7.5 Billion in Sales, €2.1 Billion Profit for Q3 2024

**ASML’s Q3 2024: A Mixed Bag of Growth and Caution in the Chip World**

Today, ASML Holding NV, the Dutch giant known for its cutting-edge lithography machines, dropped its third-quarter results for 2024, and let me tell you, it’s a bit of a rollercoaster ride. First off, the numbers: ASML raked in €7.5 billion in total net sales, with a solid gross margin of 50.8% and a net income of €2.1 billion. Not bad, right? But as we dig deeper, the story gets a bit more nuanced.

What really caught my eye was the quarterly net bookings, which came in at €2.6 billion. Of that, €1.4 billion was attributed to their EUV (extreme ultraviolet lithography) systems. For those not steeped in chip-making lingo, EUV is a Crucial Technology for producing the latest generation of semiconductors, and it’s a big deal for companies looking to keep pace with the demands of AI and high-performance computing.

Looking ahead, ASML is projecting total net sales for the fourth quarter of 2024 to hover between €8.8 billion and €9.2 billion, with a gross margin expected to fall between 49% and 50%. It’s a little lower than we might have hoped, but it’s not entirely surprising given the current market dynamics. The company anticipates total net sales for 2024 to land around €28 billion, with an optimistic outlook for 2025, estimating sales between €30 billion and €35 billion.

In a statement, ASML’s CEO Christophe Fouquet noted that while the third quarter exceeded expectations, the recovery in some market segments is taking its sweet time. “There continue to be strong developments and upside potential in AI,” he said, “but other areas are recovering more gradually than we anticipated.” It’s a reminder that even in a tech landscape that feels like it’s constantly sprinting forward, some sectors can be a bit more sluggish.

Fouquet also highlighted challenges in the Logic segment, where competitive pressures have slowed down the rollout of new production nodes. This has led to some delays in customer demand for their lithography systems, particularly the EUV machines. It’s a classic case of how interconnected the chip industry is—when one part slows down, it can send ripples throughout the entire ecosystem.

On a more positive note, ASML is gearing up for some exciting developments. The company expects to recognize the first two High NA (numerical aperture) systems upon customer acceptance in Q4, which is a significant milestone. These systems are designed to push the boundaries of chip-making technology, enhancing imaging and contrast, which are crucial for producing smaller, more powerful chips.

For those keeping an eye on shareholder returns, ASML announced an interim dividend of €1.52 per ordinary share, set to be paid out on November 7, 2024. However, it’s worth noting that the company didn’t buy back any shares during the third quarter under its ongoing buyback program. This might raise some eyebrows for investors looking for signs of aggressive capital management.

If you’re curious to hear more about these developments, ASML has released a video interview featuring CFO Roger Dassen, where he discusses the Q3 results and what they mean for the future. You can catch the interview and a transcript on their website. Plus, mark your calendars for October 16, 2024, when Fouquet and Dassen will host an investor call to dive deeper into the numbers and answer questions from both investors and the media.

As we move forward in this fast-paced tech world, it’s clear that ASML is navigating a complex landscape. While there are promising signs of growth, especially in the AI sector, the company is also facing headwinds that could impact its trajectory. It’s a delicate balance, and one that will be fascinating to watch as we head into 2025.