ASML's Q1 2024 earnings report declines due to stagnant investment.

ASML announced its first quarter 2024 business results on the 17th. According to the results, sales were 5.29 billion euros, down 21.6% year-on-year. Net profit was 1.224 billion euros, down 40.2% year-on-year.

First quarter pre-order sales reached €3.6 billion, including €656 million from EUV.

Looking at the sales ratio by technology, EUV recorded 46%, ArFi 39%, and KrF 8%, and by end user, logic accounted for 63% and memory 37%.

By region, China accounted for the largest share at 49%, followed by Korea at 19%. Taiwan accounted for 6%, the United States 6%, and other regions 22%.

This decline in performance is analyzed as being due to semiconductor manufacturers continuing to take a breather in a situation where full-scale investment was not being made.

ASML's first-quarter net sales were €5.3 billion, in the mid-range of our guidance, and gross margin was 51%, above guidance, driven primarily by the percentage of equipment recorded in sales and one-time effects, said Chief Executive Officer Peter Wennink.

In addition, “ASML is expected to achieve net sales of 5.7 to 6.2 billion euros and a gross profit margin of 50% to 51% in the second quarter, and R&D expenses (R&D) and selling, general and administrative expenses (SG&A) are expected to be approximately 1.07 billion euros and approximately 295 million euros, respectively. The overall outlook for 2024 remains unchanged, and performance in the second half is expected to be stronger than in the first half as the semiconductor industry continues to recover from the economic downturn. We see 2024 as a turning point to continue investing in expanding production capacity and technology in preparation for the economic turnaround,” he added.