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LOS ANGELES, Nov. 14, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises ASML Holding N.V. ("ASML" or the "Company") (NASDAQ: ASML) investors of a class action representing investors that bought securities between January 24, 2024, and October 15, 2024, inclusive (the "Class Period"). ASML investors have until January 13, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
ASML, a leading Dutch company, is one of the world’s top manufacturers of photolithography machines, vital for semiconductor chip production. These high-tech machines, sold to global chipmakers, use advanced lasers to craft the minuscule circuits that power modern electronics.
In November 2022, ASML outlined its financial projections, forecasting 2025 revenues in the range of €30 billion to €40 billion, along with a gross margin between 54% and 56%. However, in March 2023, the Dutch government introduced new export regulations, limiting the shipment of certain semiconductor technologies. These measures, which took effect in September 2023, particularly impacted ASML’s ability to sell to Chinese customers—a key market for the company. Despite these restrictions, ASML saw a surge in demand from China as chipmakers hurried to place orders before the export limitations came into effect. This unexpected uptick in Chinese sales helped mitigate the broader industry downturn in 2023.
The lawsuit claims that, throughout the class period, ASML executives made a series of misleading statements about the company’s growth potential and the strength of demand for its products. Specifically, they allegedly overstated ASML’s financial outlook for 2025, highlighting optimistic projections driven by anticipated growth in artificial intelligence and new semiconductor plants worldwide. Additionally, ASML downplayed the impact of the new export restrictions, with the company’s CFO reassuring investors that sales in China would remain strong through 2024. As a result of these representations, ASML’s stock was reportedly inflated during this period.
The situation changed on October 15, 2024, when ASML released third-quarter financial results earlier than planned, citing a "technical error." The company reported net bookings of just €2.6 billion, a significant 53% drop from the previous quarter’s €5.6 billion, and missed analyst expectations by €3 billion. Consequently, ASML lowered its 2025 revenue forecast to a range of €30 billion to €35 billion, from the previous €30 billion to €40 billion. The company also revised its gross margin expectations downward to 51%–53%, below the original 54%–56% target.
During a follow-up earnings call, ASML acknowledged that the semiconductor industry’s recovery was slower than anticipated, with a likely extended recovery period into 2025. The company also disclosed that its sales to China had returned to more typical levels, and it expected China’s contribution to revenue to be about 20% in 2025, marking a sharp decline from the prior year. This shift in the Chinese market was expected to further impact ASML’s gross margins.
Following these revelations, ASML’s stock price plunged. On October 14, 2024, shares closed at $872.27, but by October 16, 2024, the price had fallen by 21.6%, closing at $683.52—a drop of $188.75 per share.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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