ASML Holding, a Dutch semiconductor-equipment maker, announced that it expects its revenue in 2024 to be on par with the previous year due to uncertainties surrounding the recovery of demand in the semiconductor industry. Despite this, the company reported better-than-expected net income for the third quarter.
Chief Executive Officer Peter Wennink stated that the semiconductor industry is currently experiencing the bottom of the cycle, and customers anticipate a visible turning point by the end of this year. However, 2024 is projected to be a transition year.
ASML Holding recorded a net income of 1.89 billion euros ($2.0 billion) for the third quarter, surpassing analysts’ expectations and outperforming the second-quarter net income of EUR1.94 billion. The company attributed its success to a mix of deep ultraviolet products and one-off cost effects.
In terms of net sales, ASML reported EUR6.67 billion for the three-month period. This figure reflects a decline from the previous quarter’s EUR6.90 billion but remains within the company’s guided range of EUR6.5 billion to EUR7.0 billion. The gross margin for the third quarter stood at 51.9%, exceeding expectations and surpassing the previous quarter’s 51.3%.
Looking ahead to the fourth quarter, ASML anticipates net sales between EUR6.7 billion and EUR7.1 billion, with a gross margin ranging from 50% to 51%.
ASML remains confident in its future growth, expecting a 30% increase in net sales in 2023 along with a slight improvement in gross relative margin. In 2022, the company achieved net sales of EUR13.6 billion and a gross margin of 49.1%.
ASML Holding demonstrates continued success in the face of a turbulent semiconductor industry. Despite the uncertainties surrounding demand recovery, the company remains positive about its revenue outlook for the coming years.