Shares in ASML (AS:ASML) fell more than 7% in premarket trading Wednesday as concerns over the tighter U.S. restrictions on its exports to China overshadowed a decent Q2 report.
The computer chip-making equipment supplier reported Q2 earnings per share (EPS) of €4.01, above the estimated €3.99. Revenue came in at €6.24 billion, well below the consensus estimate of €6.49 billion.
ASML said new bookings surged to €5.6 billion, also above consensus estimates, driven by advanced EUV product lines essential for AI and smartphone chip manufacturing.
Looking ahead, the company sees Q3 2024 revenue in the range of €6.7 billion to €7.3 billion, significantly below the consensus estimates of €8.32 billion.
The soft Q3 guidance implies "a strong Q4," analysts at Jefferies said in a note.
The outlook for the full year 2024 was unchanged.
CEO Christophe Fouquet, in his first results announcement, called 2024 a "transition year" with flat performance anticipated, gearing up for a robust 2025.
“We currently see strong developments in AI, driving most of the industry recovery and growth, ahead of other market segments," Fouquet said in a statement.