investors anticipate ASML's financial reveal amidst market fluctuations
Veldhoven, Tuesday, 14 January 2025.
ASML is set to announce its quarterly financial results on January 24, 2025, drawing significant attention from investors. The company’s recent performance has been strong, with Q3 2024 earnings per share of $5.80, surpassing expectations. Revenue also exceeded projections, reaching $8.21 billion. The market eagerly awaits the upcoming results, particularly due to the global demand for semiconductors. ASML’s stock recently closed at $727.41, reflecting a 1.57% drop in a volatile market. Despite this, its shares have outperformed the broader tech sector over the past month. Analysts predict a substantial EPS growth of 23.89% for the next year. Legal challenges, including a class action lawsuit filed recently, add complexity to the financial outlook. ASML remains a pivotal player in the semiconductor industry, crucial for AI hardware production, with ambitious revenue goals set for 2030.
Market position and competitive edge
ASML’s position in the semiconductor industry remains robust, with analysts forecasting next year’s earnings per share to reach $25.62, representing a significant growth of 23.888% [1]. The company’s Q3 2024 performance demonstrated its market strength, exceeding expectations with revenue of $8.21 billion and EPS of $5.80 [1]. Despite recent market volatility, ASML has shown resilience by outperforming both the Computer and Technology sector and the S&P 500 over the past month [7].
Chinese market dynamics
A significant shift is expected in ASML’s revenue composition, particularly regarding its Chinese market presence. While Chinese operations accounted for 47% of revenue in Q3 2024, projections indicate this could decrease to approximately 20% in 2025 [5]. This adjustment reflects the impact of recent export controls and changing global semiconductor industry dynamics [5]. The company faces new challenges with the U.S. Department of Commerce’s latest export control regulations [5].
Future outlook and challenges
ASML faces both opportunities and challenges heading into 2025. The company has set an ambitious target of €60 billion in revenue by 2030 [7]. However, recent developments include a class action lawsuit filed on January 13, 2025, concerning shareholders who purchased shares from January 24, 2024 [7]. The legal situation adds complexity to the company’s near-term outlook, though strong demand for AI infrastructure, exemplified by Microsoft’s planned $80 billion investment in global data centers for 2025, suggests continued robust demand for ASML’s products [7].