ASML's upcoming earnings report sparks investor interest amid legal challenges

2024-12-05 asml

Amsterdam, Thursday, 5 December 2024.
ASML Holding N.V. is set to release its earnings report on January 22, 2025, during a period of significant market fluctuation and legal challenges. Investors are eagerly anticipating the impact of current conditions on ASML’s sales, especially regarding its EUV technology. These factors are critical for evaluating ASML’s stock performance and market standing. The company is also navigating a securities fraud class action lawsuit, filed on December 4, 2024, which alleges that ASML misled shareholders about the effects of new export controls. This legal battle adds complexity to the company’s outlook, as it grapples with both market dynamics and regulatory pressures. ASML’s stock is currently valued at $725.88 USD, showing a slight increase, yet the looming earnings report and legal proceedings could greatly influence its future valuation and investor confidence.

Market performance and earnings expectations

ASML’s recent market performance shows resilience with its stock trading at $726.42, marking a gain of $6.50 (0.90%) [3]. The semiconductor equipment manufacturer exceeded expectations in its September 2024 quarter, reporting earnings of $5.80 per share, surpassing estimates by 10.69% [1]. Analysts project earnings of $7.20 per share for the upcoming January report, indicating an anticipated year-over-year growth of 28.57% [1]. The company maintains a strong market position with a substantial market capitalization of $285.63B [3].

Legal challenges and export controls

The class action lawsuit, filed in the U.S. District Court for the Southern District of New York, stems from ASML’s October 2024 earnings announcement. The company’s stock experienced a significant decline, dropping 16% from $872.27 to $730.43 following lower-than-expected earnings [2]. The situation worsened when the stock fell an additional 6.4% after the earnings call, attributed to cautious customer behavior and declining Chinese sales [2]. The Dutch government’s September 2024 decision to lift export measures has provided some relief [5].

Global market dynamics

ASML’s position in the semiconductor industry remains strong, with the sector ranking in the top 32% according to industry metrics [1]. However, the company faces challenges from global trade tensions. Recent U.S. restrictions have affected the semiconductor supply chain, with 136 Chinese firms being placed on an export blacklist [6]. Despite these challenges, ASML entered 2024 with a substantial order backlog of €39 billion, suggesting potential market recovery by 2025 [5].

Bronnen

Earnings report Financial forecast