asml misses q4 earnings expectations
Veldhoven, Tuesday, 11 February 2025.
ASML Holding NV, a leading Dutch semiconductor equipment maker, has reported its earnings for the fourth quarter of 2024. The company announced an earnings per share (EPS) of $7.30, falling $0.37 short of analysts’ consensus estimate of $7.67. This unexpected miss in EPS figures might impact investor confidence regarding ASML’s profitability and future growth prospects. Despite missing the EPS forecast, ASML continues to project a robust 16.29% growth in earnings next year, with expectations rising from $25.17 to $29.27 per share. The trailing EPS stands at $20.80, along with a price-to-earnings (P/E) ratio of 36.20. The semiconductor giant is set to announce its next earnings on April 16, 2025. Investors and analysts alike will be keen to see if ASML can align future results with the positive growth outlook amid current challenges.
Market reaction and stock performance
The market’s response to ASML’s earnings miss has been relatively measured. The company’s stock traded at $752.98 on February 11, 2025, showing a gain of 1.41% [2]. This resilience suggests investors may be focusing on ASML’s longer-term prospects rather than the quarterly disappointment. The stock maintains a strong position, trading well above its 52-week low of $644.07, though still below its peak of $1,103.10 [2].
Revenue performance and future outlook
Despite the EPS miss, ASML demonstrated solid revenue performance. The company’s future earnings trajectory remains positive, with analysts projecting substantial growth. Wall Street consensus estimates indicate earnings will grow to $29.27 per share in the coming year [1]. This projected growth suggests confidence in ASML’s business fundamentals and market position, despite the current quarter’s underperformance.
Industry context and semiconductor market dynamics
ASML’s earnings report comes amid significant changes in the semiconductor industry. The sector faces potential impacts from proposed US semiconductor tariffs, expected to be formalized by the end of February 2025 [4]. These regulatory changes could affect global semiconductor market dynamics and supply chains, potentially influencing ASML’s future performance as a key equipment supplier to the industry.