ASML falls after bookings miss estimates, CEO warns of uncertainty around US tariffs
Apr. 16, 2025 5:09 AM ET
By: Ravikash Bakolia, SA News Editor
Shares of ASML (NASDAQ: ASML) fell about 4% premarket on Wednesday after the company warned that tariffs were increasing uncertainty for the long term, but maintained its annual outlook.
Tariffs and Outlook:"There's this new uncertainty around tariffs. And like many experts, many businesses are explaining this is, of course, something that we don't know how to quantify yet. But this is adding definitely uncertainty on the long term," said CEO Christophe Fouquet in a video uploaded on ASML's website.
However, Fouquet said that they see a lot of strength in AI. "In fact some of the demand for this year, of course, but also for next year has solidified. So that's very encouraging," Fouquet noted.
Fouquet noted that, adding to this, the discussion the company had with its customers, points to 2025 and 2026 to be both growth years.
ASML's CFO Roger Dassen broke down four categories by which tariffs could impact the company. These were shipments to the U.S.; tariffs on imported parts and tools; material imports required for its manufacturing in the U.S.; and tariffs from other countries on U.S. exports.
"We're very actively working with the entire ecosystem to try and minimize the overall impact on the whole ecosystem as a result of that," said Dassen.
Dassen noted that it was too early to discuss what extent of impact tariffs would have on global gross domestic product, or GDP, and total market demand, "and therefore it's quite impossible actually to put a number on that."
Revenue Outlook:ASML kept its 2025 total net sales outlook unchanged, and expects it to between €30B and €35B (with mid-point at €32.5B).
ASML expects second quarter 2025 total net sales to be between €7.2B and €7.7B (with mid-point at €7.45B).
CEO Fouquet said in the earnings release, "artificial intelligence continues to be the primary growth driver in our industry. It has created a shift in the market dynamics that benefits some customers more than others, contributing to both upside potential and downside risks as reflected in our 2025 revenue range."
Key Metrics:The Dutch company — which makes extreme ultraviolet lithography, or EUV, machines — saw first quarter of 2025 total net sales grow about 46.3% year-over-year to €7.74B, which missed estimates. Compared to the fourth quarter of 2024, net sales fell 16.4%.
Bookings:
The company reported bookings of €3.94B billion, which was less than the average estimate of €4.82B by analysts, according to a report by Bloomberg News. Net bookings for the EUV machines in the first quarter were €1.2B.
While reporting its fourth quarter results in January, ASML had said that it would stop reporting order bookings after 2025, "PO bookings can be lumpy and are not necessarily a good reflection or an accurate reflection of the business momentum," Dassen had said "What we will do, is provide a backlog. So, on an annual basis we will provide you with the total backlog."
China Sales:
China accounted for 27% of the total net system sales of about €5.742B, behind the South Korea with 40% share in the first quarter of 2025. U.S. and Taiwan had 16% share, each in the first quarter of 2025, according to the company's investor presentation.
In the fourth quarter of 2024, China accounted for 27% of the total net system sales of about €7.12B, behind the U.S. with 28% share. Fouquet had said then that "2025 will be a year where we see China going back to a more normal ratio in our business."
The U.S. has placed several export restrictions on companies, including ASML, to curb China's access to advanced semiconductor equipment, which, among other things, is used in making AI products.
Dividend: ASML intends to declare a total dividend of €6.40 per ordinary share for 2024. Recognizing the three interim dividends of €1.52 per ordinary share paid in 2024 and 2025, this leads to a final dividend proposal of €1.84 per ordinary share.
Stock Buyback: ASML said that in the first quarter, it bought around 4M shares for about €2.7B, under the current 2022-2025 share buyback program. |
