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Investing.com -- ASM International (AS:ASMI) on Wednesday reported a solid fourth quarter, with revenue reaching the upper end of its guidance and margins coming in ahead of expectations.
However, the company missed order estimates for the first time since mid-2023, primarily due to weaker demand from China, sending its shares down.
While ASM reaffirmed its full-year 2025 revenue outlook, management acknowledged uncertainty in the second half, raising concerns among investors. As a result, the stock is trading lower despite strong quarterly results.
The company posted €809 million in revenue for Q4, slightly above analyst expectations and at the high end of its projected range of €770-810 million.
Foundry orders remained the primary driver, followed by memory and logic. However, total new orders fell to €731 million, about 7% below market expectations of €787 million, with China contributing to the shortfall.
The book-to-bill ratio declined slightly to 0.9x, though the backlog remained stable at approximately €1.6 billion.
Margins were another bright spot, with gross margin improving 1.7 percentage points due to a favorable product mix. Adjusted operating margins also exceeded expectations by 1.5 percentage points, reflecting strong cost management and product performance.
ASM expects revenue for Q1 2025 to be in the range of €810-850 million, slightly ahead of consensus estimates of €807 million. Management anticipates a further increase in Q2, aligning with seasonal trends.
For the full year, the company reiterated its revenue guidance of €3.2-3.6 billion. However, executives signaled caution, noting that it is still too early to provide a more precise forecast.
While leading-edge logic and foundry demand are expected to drive growth, visibility for the second half remains limited, adding a layer of uncertainty to ASM’s outlook.