Latest news with #RogerDassen
Yahoo
17 hours ago
- Business
- Yahoo
After Falling on Earnings, Should You Buy the Dip in ASML Stock?
Key Points ASML has struggled over the past year due to export restrictions on China and order delays. The stock tumbled again after management said it wasn't sure revenue would grow in 2026. Despite those troubles, the stock should still pay off for patient investors in the long run. 10 stocks we like better than ASML › On the surface, ASML Holding's (NASDAQ: ASML) competitive advantages are clear. It's the world's only maker of extreme ultraviolet lithography (EUV) machines, which companies like Taiwan Semiconductor Manufacturing rely on to make the world's most advanced chips. Typically, being the only producer of a high-tech machine is an advantageous position for a company, and it is for ASML, but it hasn't been enough to make the stock a winner recently. While the rest of the artificial intelligence (AI) and semiconductor sectors have been soaring, ASML is down sharply from its peak last year. After delivering an underwhelming earnings report on Wednesday, the stock fell again, losing 8.3%, and it's now off 32% from that record last year. Because its business involves selling very expensive machines, which can cost around $200 million, ASML's results can be volatile quarter to quarter. In the second quarter, the company reported revenue growth of 23% to 7.69 billion euros. This beat estimates at 7.52 billion euros, though that was down less than 1% in the quarter. The company sold 67 new lithography machines, down from 73 in the first quarter. Net bookings were better than expected, increasing from 3.9 billion euros in Q1 to 5.5 billion, a positive growth signal. 2.3 billion euros' worth of those orders were for EUV machines. Further down the income statement, profit was also down slightly on a sequential basis. Gross margin fell from 54% to 53.7%, and earnings per share declined from 6.00 euros in Q1 to 5.90. What's ailing ASML While the second-quarter results were in line with estimates, there were some challenges that are outside of the company's control, but continue to plague the business. First, restrictions on exporting semiconductor technology to China have posed a problem for ASML. Management said on the earnings call that it was lowering its backlog by 1.4 billion euros to 33 billion euros due to order cancellations related to those restrictions. That reduction was related to deep ultraviolet (DUV) lithography machines, which are less advanced than the EUV machines it's best known for. What seemed to be more disappointing to investors were its cautious comments about 2026. CEO Roger Dassen said: "Looking at 2026, we see that our AI customers' fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macroeconomic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage." Essentially, management is unsure that revenue will grow next year. For the third quarter, the company said it expects 15% revenue growth, to 7.4 billion euros to 7.9 billion euros. What it means for ASML ASML isn't the first tech stock to get dumped by investors for a lack of clarity with its guidance. A number of companies have chosen not to offer guidance due to uncertainty around tariffs, export controls, and volatility in the broader global economy. Arm Holdings did not offer full-year guidance for its new fiscal year in its earnings report in May, and the stock fell as a result. However, that decision wasn't a reflection of weakness, but of uncertainty in both the macroeconomy and with its customer base, which also had not given guidance. However, the strength in AI-related demand is a positive sign for ASML, and investors shouldn't lose sight of long-term tailwinds from AI. For now, ASML is struggling with the vicissitudes of the semiconductor equipment cycle, which operates on a different course than the broader chip sector, but equipment upgrades will come eventually. After Wednesday's sell-off, the stock now trades at a price-to-earnings ratio of about 30, which seems like a fair price to pay for an industry leader with a monopoly in new technology and the potential for accelerating growth from AI. The company continues to expect 44 billion to 60 billion euros in revenue by 2030, and gross margin improving to 56% to 60%. That implies double-digit revenue growth and expanding margins. If the company can deliver on that, the stock should be a winner over the next five years. Do the experts think ASML is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did ASML make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,048% vs. just 180% for the S&P — that is beating the market by 867.59%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jeremy Bowman has positions in ASML, Arm Holdings, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. After Falling on Earnings, Should You Buy the Dip in ASML Stock? was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
ASML Holding NV (ASML) Q2 2025 Earnings Call Highlights: Strong Sales and Margin Performance ...
Total Net Sales: EUR7.7 billion, at the upper end of guidance. Net System Sales: EUR5.6 billion, with EUR2.7 billion from EUV sales and EUR2.9 billion from non-EUV sales. Installed Base Management Sales: EUR2.1 billion, above guidance. Gross Margin: 53.7%, above guidance. R&D Expenses: EUR1.2 billion. SG&A Expenses: EUR299 million. Net Income: EUR2.3 billion, representing 29.8% of total net sales. Earnings Per Share: EUR5.90. Cash, Cash Equivalents, and Short-term Investments: EUR7.2 billion. Net System Bookings: EUR5.5 billion, with EUR2.3 billion from EUV and EUR3.2 billion from non-EUV. Backlog: Approximately EUR33 billion. Final Dividend Paid: EUR1.84 per ordinary share. First Quarterly Interim Dividend for 2025: EUR1.60 per ordinary share. Share Buyback: EUR1.4 billion in Q2 2025, totaling EUR5.8 billion for the 2022-2025 program. Full Year 2025 Revenue Growth Guidance: Around 15% increase with a gross margin of around 52%. Q3 2025 Revenue Guidance: EUR7.4 billion to EUR7.9 billion. Q3 2025 Gross Margin Guidance: 50% to 52%. Q3 2025 R&D Expenses Guidance: Around EUR1.2 billion. Q3 2025 SG&A Expenses Guidance: Around EUR310 million. Warning! GuruFocus has detected 6 Warning Sign with FHN. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q2 2025, reaching the upper end of their guidance. The company's gross margin for the quarter was above guidance at 53.7%, driven by increased upgrade business and lower-than-expected tariff impacts. Net income for Q2 was EUR2.3 billion, representing 29.8% of total net sales, with earnings per share of EUR5.90. ASML Holding NV (NASDAQ:ASML) expects a 30% increase in EUV capacity in 2025 compared to 2024, driven by higher productivity of the NXE:3800E systems. The company anticipates a 15% revenue increase for the full year 2025, with a gross margin of around 52%. Negative Points ASML Holding NV (NASDAQ:ASML) faces increasing uncertainties due to macroeconomic and geopolitical developments, impacting customer capital expenditure timing. The gross margin in the second half of 2025 is expected to be lower than the first half, primarily due to the margin dilutive effect of High NA systems. There is a EUR1.4 billion adjustment in the backlog related to customer responses to export restrictions, affecting Deep UV and application business. The company has not confirmed growth for 2026 due to ongoing uncertainties, despite preparing for potential growth. ASML Holding NV (NASDAQ:ASML) is experiencing a shift in demand dynamics, with China accounting for over 25% of total revenue, raising concerns about potential pull-forwards. Q & A Highlights Q: Why is the EUV revenue growth lower than expected, and how does it relate to the installed base business? A: Roger Dassen, CFO, explained that the expected EUV growth for the year is about 30%, down from an initial higher estimate. The difference is due to a shift in revenue from system sales to the upgrade business, as many tools shipped at lower configurations are being upgraded to full capacity, which is accounted for in the installed base business rather than system sales. Q: How does ASML price its tools, and is there a difference in value between multi-patterning Low NA and single High NA EUV? A: Christophe Fouquet, CEO, confirmed that ASML prices its tools based on the value provided to customers, including productivity and performance improvements. High NA EUV offers significant value by simplifying processes and enabling further node advancements, which can justify higher pricing compared to multi-patterning Low NA EUV. Q: What impact does the potential removal of export bans on AI chips to China have on ASML? A: Roger Dassen noted that while it may not directly result in a significant increase in tool sales, the removal of export bans is positive for the broader ecosystem, potentially strengthening global reach and benefiting ASML indirectly. Q: How does ASML view the current uncertainty around tariffs and its impact on 2026 growth projections? A: Christophe Fouquet and Roger Dassen highlighted that ongoing tariff discussions create uncertainty, affecting customer investment decisions. This uncertainty has led ASML to be more cautious about confirming growth for 2026, despite strong underlying demand driven by AI. Q: What are the key milestones for High NA EUV adoption, and how is the program progressing? A: Christophe Fouquet stated that the current focus is on qualifying the technology with the EXE:5000 system. The next phase involves ensuring tool maturity for high-volume manufacturing, with the EXE:5200 system being a critical step. The program is progressing well, with positive customer feedback on performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Bloomberg
16-07-2025
- Business
- Bloomberg
ASML CFO Says Trade War Worries Clients More Now Than in April
ASML Holding NV 's clients are more worried about the global trade war now than they were in April, Chief Financial Officer Roger Dassen said, as the Dutch firm blamed tariffs for clouding its sales outlook next year. 'Our customers are more concerned about the tariffs discussion today than they were three months ago,' Dassen said on a call with analysts Wednesday. 'Countries are in full battle mode again when it comes to tariffs.'
CNA
16-07-2025
- Business
- CNA
ASML says it may not achieve 2026 growth as chipmakers face US tariff uncertainty
VELDHOVEN, Netherlands :ASML, the world's biggest supplier of computer chip-making equipment, warned on Wednesday that it may not achieve growth in 2026 as chipmakers building factories in the U.S. await clarity on how hard tariffs will impact them. The uncertainty in tariff negotiations is spurring chipmakers in the U.S. to delay finalizing investments, CFO Roger Dassen told journalists on a media call. Shares in ASML fell as much as 7.8 per cent and were on track for their worst day since October, dragging peers ASM, BESI, Soitec lower as well. A potential 30 per cent U.S. tariff on European goods could ramp up the price of a single high-end machine to 325 million euros from 250 million euros, he noted. "Clarity is what customers are looking for before they can really finalize their views as to what they're going to do," Dassen said, reiterating ASML's intention to pass such costs on. Beyond a simple tax on a finished machine, the tariffs may pile up for ASML as parts are sent from the Netherlands to the U.S. several times. Analysts had hoped that the quarter would provide some reassurance over its outlook for 2026, but the company warned that geopolitical uncertainty still clouded its prospects. SALES GROWTH UNCERTAIN "The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs," ASML's Chief Executive Christophe Fouquet said in an internal interview on the company's website. The direct and indirect impact of tariffs was still very uncertain, CFO Roger Dassen said in the interview, and ASML was working with its supply chain to mitigate any impact. "While we still prepare for growth in 2026, we cannot confirm it at this stage," Fouquet said in a statement. If it materialized, 2026 would be the first flat year in over a decade of uninterrupted revenue growth since 2012. ASML investor Han Dieperink, chief investment officer at investment firm Aureus, said he was not worried about the upcoming year, noting that the quarter pointed to solid demand. The Dutch group's net bookings, the most closely watched figure in the industry, were 5.54 billion euros ($6.4 billion), 25 per cent ahead of analysts' consensus estimate of 4.44 billion euros, according to researcher Visible Alpha. ASML's EUV lithography machines represented 42 per cent of those bookings, or 2.3 billion euros' worth. The machines, which are the world's most advanced chip circuit printing system, are the key enabling technology behind leading-edge chips like those used in Nvidia's GPUs, or Apple's Macs and iPhones. "The second quarter beats from top to bottom," analyst Michael Roeg of Degroof Petercam said. Roeg cited strong demand from artificial intelligence related chipmakers. Chinese demand also remained elevated, representing 27 per cent of all machine sales in the last three quarters, and confirming the country's chipmakers have continued to buy less advanced machines in anticipation for more U.S.-led export restrictions. ($1 = 0.8608 euros)
Yahoo
17-04-2025
- Business
- Yahoo
ASML Holding NV (ASML) Q1 2025 Earnings Call Highlights: Strong EUV Sales and Strategic Challenges
Total Net Sales: EUR7.7 billion. Net System Sales: EUR5.7 billion (EUV: EUR3.2 billion, Non-EUV: EUR2.5 billion). Install Base Management Sales: EUR2 billion. Gross Margin: 54%. R&D Expenses: EUR1.161 billion. SG&A Expenses: EUR281 million. Effective Tax Rate: 16.7%. Net Income: EUR2.4 billion. Earnings Per Share (EPS): EUR6. Cash, Cash Equivalents, and Short-term Investments: EUR9.1 billion. Free Cash Flow: Minus EUR475 million. Net System Bookings: EUR3.9 billion (EUV: EUR1.2 billion, Non-EUV: EUR2.8 billion). Dividend: EUR1.52 per ordinary share for Q1 2025; total 2024 dividend proposal of EUR6.40 per ordinary share. Share Purchases: EUR2.7 billion in Q1 2025. Warning! GuruFocus has detected 2 Warning Sign with CFG. Release Date: April 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q1 2025, in line with guidance. The company achieved a gross margin of 54%, exceeding expectations due to favorable EUV product mix and customer productivity milestones. Net income for Q1 2025 was EUR2.4 billion, representing 30.4% of total net sales, with an earnings per share of EUR6. ASML Holding NV (NASDAQ:ASML) continues to see strong demand in the AI sector, which is expected to drive growth in 2025 and 2026. The company is making significant progress in EUV technology, with milestones achieved in both low NA and high NA platforms, supporting customer roadmaps and cost optimization. ASML Holding NV (NASDAQ:ASML) experienced a negative free cash flow of EUR475 million in Q1 2025 due to customer payment dynamics and investments in fixed assets. There is increased uncertainty in the business environment due to ongoing discussions about tariffs, which could impact ASML Holding NV (NASDAQ:ASML) and its customers. The gross margin for the second half of 2025 is expected to be lower than the first half due to potential tariff impacts and lower upgrade revenue. ASML Holding NV (NASDAQ:ASML) faces challenges with the geopolitical situation, particularly regarding tariffs that could affect the semiconductor supply chain. The company anticipates a wider range of gross margins for Q2 2025 due to uncertainties around tariffs and their absorption in the value chain. Q: Could you consider flexibility around the pricing of high-NA to facilitate adoption? A: Christophe Fouquet, CEO: The main reason for not adopting new systems quickly is tool maturity, not price. We focus on achieving maturity to ensure optimized cost of technology. Lowering prices without maturity would create issues for customers. Q: What kind of bookings run rate should we expect to see growth in 2025 and 2026? A: Roger Dassen, CFO: We believe 2026 will be a growth year based on technology and market demand, despite macroeconomic uncertainties. While we have a strong backlog, additional bookings are needed for growth, but we won't quantify the exact run rate needed. Q: Is China still expected to account for around 25% of sales this year? A: Roger Dassen, CFO: Yes, we expect China to be slightly over 25% of sales this year, with demand particularly strong in the mainstream business. The backlog composition for China remains in the 20% to 25% range. Q: How are customer conversations regarding tariffs affecting delivery schedules? A: Christophe Fouquet, CEO: Tariff announcements have not changed business conversations with customers. There is uncertainty, but discussions have not fundamentally altered business planning or delivery schedules. Q: Can you provide an update on the adoption of single-exposed EUV versus multi-patterning? A: Christophe Fouquet, CEO: Adoption is happening gradually. Each new customer node with better cost of technology, like the 3800E, presents an opportunity for more single-exposed adoption. This is an ongoing effort with customers. Q: What is the expected impact of tariffs on gross margins for the full year? A: Roger Dassen, CFO: It's difficult to predict the full-year impact due to uncertainty around tariffs. We aim to minimize exposure and believe the tariff burden should be shared across the value chain, not solely by ASML. Q: How does the geographic diversification of fabs affect your business? A: Roger Dassen, CFO: Dispersed fabs may lead to increased capacity needs, potentially driving semiconductor demand. However, tariff uncertainties add complexity to this scenario. Q: What are the key milestones for the EXE platform from R&D to production? A: Christophe Fouquet, CEO: There are three phases: R&D validation with EXE5000, early production testing with EXE5200, and high-volume manufacturing expected in 2027-2028. Progress is ongoing with customers. Q: How does the order volatility relate to tariff uncertainties? A: Roger Dassen, CFO: Order volatility is more related to the lumpiness of order intake rather than tariff uncertainties. Major orders require significant governance, affecting subsequent quarters' order intake. Q: How are you addressing the US tariffs in relation to encouraging semiconductor manufacturing in the US? A: Roger Dassen, CFO: The complexity of tariffs is recognized by all parties, including the US administration. There is a need for more time to understand how to reconcile onshoring goals with tariff impacts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
