LRCX - ASML Q2 2024 Earnings Preview And 2024-2025 Tailwinds

2024-07-12 09:49:51 ET

Summary

• ASML Holding N.V.'s Q1 2024 results were disappointing, but it overtook Applied Materials as the top WFE Semiconductor Equipment supplier in 2023.
• ASML expects a Q2 2024 net sales increase of 12.3% from Q1, with a gross margin of 50-51%.
• ASML's strategic focus on high-volume manufacturing for TSMC's 2nm nodes presents a significant revenue opportunity for 2024 and 2025.
• ASML's strong sales to China continue despite ongoing U.S. sanctions.
• ASML's high backlog of EUV and DUV systems illustrates the strong demand for lithography equipment with minimal competition.

I knew when I took on this assignment to write about ASML Holding N.V.'s ( ASML ) upcoming Q2 2024 earnings call on July 17, 2024 , that it would be exceedingly difficult. By all metrics, ASML’s Q1 2024 results were disastrous, as shown in Table 1. According to ASML, every metric was down QOQ, by double-digit percentages.

However, CY 2023 was an exceedingly strong year for ASML. In a February 13, 2024 Seeking Alpha article entitled “ASML Led Global WFE Equipment Market In 2023 As China's Naura Maintains 9th Position,” ASML overtook Applied Materials ( AMAT ) as the top WFE (wafer front end) Semiconductor Equipment supplier in 2023....

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