ASML, a leader in semiconductor equipment, reported mixed results in its Q1 earnings, surpassing profit estimates but falling short on sales projections. The Dutch company posted earnings equivalent to $3.31 per share on sales of $5.63 billion, below analysts’ expectations. ASML’s guidance for the current quarter also missed forecasts, contributing to a 7.1% decline in its stock price.
Despite the setback, ASML maintains its full-year outlook, anticipating a stronger performance in the second half of 2024. CEO Peter Wennink emphasized the company’s commitment to investing in capacity ramp and technology to adapt to industry dynamics.
Wall Street analysts offered varied responses to ASML’s report. Raymond James’ Srini Pajjuri maintained a bullish outlook, attributing the sales miss to temporary factors rather than underlying demand issues. He cited potential growth drivers such as increasing demand and technological trends like generative AI. 
CFRA Research’s Brooks Idlet expressed caution regarding geopolitical risks, particularly elevated China demand, but remained optimistic about ASML’s ability to navigate challenges. Bernstein’s Sara Russo echoed confidence in ASML’s long-term growth prospects despite short-term uncertainties.
ASML’s stock, listed on several IBD indices, remains under scrutiny as investors assess its performance amidst market fluctuations.
