• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

ASM International shares fall on revised guidance, but analysts see long-term upside

by September 23, 2025
by September 23, 2025

Shares in ASM International fell on Tuesday after the Dutch supplier of semiconductor-manufacturing equipment revised its full-year forecast, citing weaker-than-expected demand in the final months of the year.

The stock slipped 2.4% to 488.50 euros in early European trading, extending its year-to-date decline to 13%.

The Amsterdam-listed company now expects full-year revenue to land at the lower end of its previously guided 10%-20% range.

At constant currencies, second-half revenue is projected to be 5%-10% lower than the first half, as demand cools across several key markets.

Fourth-quarter weakness clouds outlook

While ASM’s third-quarter performance was in line with earlier guidance, the company flagged a deterioration in fourth-quarter demand.

“This is due to lower-than-expected demand in leading-edge logic/foundry, with a mixed picture per customer, as well as lower demand in the power/wafer/analog markets,” it said in a statement.

The softer backdrop will also weigh on new bookings, with management warning that the book-to-bill ratio will likely fall below one in the second half.

That indicates incoming orders will trail revenue, a negative sign for near-term visibility.

Long-term growth ambitions reaffirmed

Despite the near-term headwinds, ASM sought to reassure investors by laying out ambitious growth targets ahead of its investor day.

The company expects revenue to climb to more than 5.7 billion euros ($6.73 billion) by 2030, supported by a compound annual growth rate of at least 12%.

Between 2026 and 2030, the gross margin is projected to be 47%-51%, while the operating margin is expected to exceed 30%.

Free cash flow is anticipated to top 1 billion euros annually by 2030.

The company also narrowed its 2027 revenue outlook to a range of 3.7 to 4.6 billion euros, down from a prior range of 4 to 5 billion euros, reflecting currency headwinds.

Analysts highlight order timing issues, sectoral headwinds

Market reaction reflected investor disappointment, with analysts noting expectations had been set for a stronger fourth quarter.

Dutch bank ING said the weaker guidance did not point to a structural decline but rather the timing of orders in the leading-edge logic market.

“Investors should focus on ASM International’s exposure to long-term technology transitions, which underpin growth from 2026 onward,” the analysts said.

Degroof Petercam analyst Michael Roeg said the softer outlook may also reflect challenges with major customers, including Intel and Samsung.

Meanwhile, KBC Securities described the lower 2025 guidance as “a bit unexpected but not unreasonable,” pointing to broader headwinds for the wafer fab equipment sector as Chinese demand normalises.

The mixed near-term picture leaves investors balancing ASM’s cyclical exposure with its longer-term potential.

For now, the company’s reaffirmed growth ambitions underline management’s confidence that structural demand for semiconductor equipment will remain intact despite periodic volatility.

The post ASM International shares fall on revised guidance, but analysts see long-term upside appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
‘Due to overhelming support:’ Turning Point USA says Charlie Kirk merchandise could take up to 12 weeks
next post
Europe market opens in green: STOXX 600 rallies 0.3% as renewable stocks surge

Related Posts

Cyberattack halts Asahi production, disrupts Japan’s beer supply

October 3, 2025

Europe markets open: Stoxx 600 rises 0.4%, extending...

October 3, 2025

Bitcoin ETFs see over $600M in inflows as...

October 3, 2025

Stockholm leads Europe in IPO activity with $6.8...

October 3, 2025

Indonesia suspends TikTok licence after data refusal during...

October 3, 2025

Why the Thai baht’s climb against US dollar...

October 3, 2025

OpenAI valuation hits $500 billion as employees sell...

October 2, 2025

Here’s why JPMorgan, Morningstar are bullish on Alibaba...

October 2, 2025

Europe markets open: Stoxx 600 jumps 0.6%, led...

October 2, 2025

Will the Tesco share price hit 500p as...

October 2, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • What I Saw in Milei’s Argentina

    October 3, 2025
  • Tariffs Rest on Distrust of Citizens

    October 3, 2025
  • Cyberattack halts Asahi production, disrupts Japan’s beer supply

    October 3, 2025
  • Europe markets open: Stoxx 600 rises 0.4%, extending its record-setting rally

    October 3, 2025
  • Bitcoin ETFs see over $600M in inflows as BTC price nears $120K

    October 3, 2025
  • Stockholm leads Europe in IPO activity with $6.8 billion raised

    October 3, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,770)
  • Editor's Pick (279)
  • Investing (185)
  • Stock (1,885)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Nvidia warns of formidable Chinese AI rivals...

May 30, 2025

Highs today, higher tomorrow? UBS sees AI...

June 26, 2025

Bill Ackman raises stake in Hertz: here’s...

April 18, 2025