Nucor earnings beat by $0.08, revenue fell short of estimates
Wednesday, shares of ASML Holding NV (AS:ASML:NA) (NASDAQ: ASML), currently trading at $683.16, witnessed a 5% decline in European trading after the company reported first-quarter revenues and projections that fell short of market expectations. The semiconductor equipment giant, with trailing twelve-month revenue of $29.3 billion, maintains strong financial health according to InvestingPro analysis. Evercore ISI analyst C.J. Muse maintained an Outperform rating and a price target of EUR 965.00 on the stock, despite the lower-than-anticipated orders and forward-looking guidance.
ASML’s first-quarter revenues of €7.74 billion were slightly below the Street’s estimates by 0.4%, while orders, including €1.2 billion for Extreme Ultraviolet (EUV) systems, totaled €3.9 billion against the expected €4.8 billion. The company’s second-quarter revenue outlook of €7.45 billion also missed forecasts by 4%, and the gross margin (GM) outlook of 50-53% was impacted by tariff-related headwinds of approximately 100 basis points. Notably, ASML has maintained a robust gross profit margin of 51.28% over the last twelve months.
Evercore ISI highlighted the 35-40% price-to-earnings (P/E) compression that ASML has experienced over the past nine months, suggesting that the stock has already factored in the reductions. Currently trading at a P/E ratio of 29.84, InvestingPro analysis suggests the stock is slightly undervalued, with 12 additional key insights available to subscribers, including the company’s impressive 19-year track record of consistent dividend payments. Muse’s stance indicates a recommendation to buy on the weakness, signaling confidence in ASML’s long-term performance despite the current shortfall in orders and revenue projections.
Investors are closely monitoring ASML’s performance as the company navigates through the challenges presented by market expectations and tariff pressures. The firm’s analysis provides a perspective on the company’s valuation in light of recent trading activity and future prospects. For comprehensive insights into ASML’s financial health, valuation metrics, and growth potential, access the detailed Pro Research Report available exclusively on InvestingPro, part of their coverage of over 1,400 top US equities.
In other recent news, ASML Holding NV has reaffirmed its revenue forecast for 2025, projecting between EUR30-35 billion, despite recent challenges such as lower-than-expected orders and the impact of tariffs. Citi analyst Andrew Gardiner maintained a Buy rating on ASML, with a price target of EUR930.00, highlighting the company’s technological advancements and potential for increased profit margins. Meanwhile, TD Cowen also reiterated a Buy rating with a price target of EUR825.00, emphasizing ASML’s strategic position in the semiconductor industry and its solid long-term outlook. BofA Securities maintained its Buy rating with a EUR859.00 target, suggesting ASML’s revenue guidance for 2025 is achievable, despite a slight reduction in Deep Ultraviolet (DUV) revenue projections.
ASML’s annual report revealed weakening demand due to export controls, particularly affecting its sales in China, which accounted for 36% of its sales last year. The company noted that U.S. export restrictions have led to reduced capital expenditure among its customers. This comes amid a broader downturn in semiconductor stocks, exacerbated by recent tariffs announced by the U.S. and retaliatory measures from China. Despite these challenges, analysts remain optimistic about ASML’s prospects, citing its key role in the semiconductor industry’s technological advancements.
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