ASML (ASML)
ASML, the largest supplier of equipment to computer chip makers, said Wednesday that first-quarter profit beat expectations, but sales fell short of expectations and its stock price fell.
It was revealed that sales decreased by 21.6% and net profit decreased by 37.4% compared to the same period last year. ASML’s net sales fell to the midpoint of the company’s guidance.
ASML’s net machine bookings in the first quarter were €3.6bn (£3.08bn, $3.83bn), down 4% year-on-year but down a third compared to the December quarter. It decreased by almost 2.
The company has kept its earnings forecast unchanged, with sales expected to remain flat from 27.6 billion euros in 2023. It is expected to benefit from new chip factories planned with support from governments in Taiwan, South Korea, Japan, China and the United States.
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“There are many factors at play. The economic environment remains incredibly uncertain, so customers are not ordering the same volumes as before,” said Ben Ballinger, technology analyst at Quilter Cheviot. “There’s a product transition happening.” Since it’s 2025, some people may be saving money by cutting back on spending. It’s still early in the year, so things may improve. Finally, sales in China are strong, but it’s difficult to tell what will happen next.
“For ASML, now is not the time to panic. Given new product introductions and the fact that 2024 remains the year of recovery for this industry, investors and industry watchers remain focused on 2025. .”
Asos (ASC.L)
Asos shares rose 4% in London on Wednesday, even as the company announced higher losses as half-year sales fell by nearly a fifth.
The group announced an underlying loss before tax of £120m for the six months to March, compared with a loss of £87.4m in the same period last year.
The online retailer confirmed that underlying sales fell 18% on an adjusted basis in the first half of the year and still expects sales to fall by up to 15% for the full year.
Nevertheless, underlying profits are expected to be “significantly” higher in the 2024-25 financial year than in the previous two years due to cost cuts and reduced inventory levels.
CEO José Antonio Ramos Calamonte said this fiscal year is “about taking the necessary actions to get us on that path.”
“If you offer the right clothing at the right price, consumers will jump in,” he added, highlighting strong sales of denim, skirts and animal print this spring.
Asos has also named former Sainsbury’s and Amazon executive Dave Murray as its new chief financial officer, saying his e-commerce experience will help the group return to profitability.
LVMH (MC.PA)
LVMH, the world’s largest luxury goods group, which owns brands such as Louis Vuitton, Tiffany & Co. and Dior, revealed that sales rose in the first three months of this year, sending its stock price 4.6% at the time of writing. Rose.
The performance was broadly in line with the group’s organic revenues, which rose 3% to €20.7bn (approximately £17.7bn), with organic revenues increasing by 2% in its key fashion and leather goods divisions.
The move comes as investors have long been concerned about a slump in the luxury goods sector as consumers struggle with high interest rates.
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Sales in Asia ex-Japan fell 6%, but purchases by Chinese shoppers worldwide rose 10%, benefiting from China’s end to its zero-corona virus policy.
LVMH, Europe’s second-largest listed company with a market capitalization of about 400 billion euros, was the first luxury goods maker to report quarterly sales this year amid concerns about an economic slowdown.
“The market environment was difficult, especially in China, but LVMH was able to survive as expected,” said Mario Ortelli of luxury goods advisory firm Ortelli.
Anyway, eat (jet el)
Just Eat’s stock performance did not improve as orders in the first quarter were lower than expected. The stock price fell by up to 5% on the news.
The total number of orders in the first quarter was 214.2 million, lower than Deutsche Bank’s consensus of 217.1 million and brokerage estimates of 220.2 million.
This was a slight improvement from the 7% decline over the previous three months, but was still worse than expected.
The gross transaction value (GTV) for the first three months of this year was EUR 6.55 billion, in line with the average forecast of analysts in the consensus provided by the company.
The company said GTV grew 11% in key markets of the UK and Ireland and 5% in Northern Europe, offsetting an 11% decline in North America and a 15% decline in Southern Europe and Australia.
“Just Eat Takeaway orders continue to be disappointing, and in times of disinflation, this is the name of the game,” Brian Garnier analyst Clement Junero said in an emailed comment. Stated.
The group announced its exit from New Zealand on Monday, while adding it was still considering selling part or all of its troubled U.S. unit, Grubhub.
Jitse Groen, Chief Executive Officer of Just Eat Takeaway.com said: “Just Eat Takeaway.com has started the year well, with GTV growth accelerating in the UK and Ireland and momentum continuing in Northern Europe in the first quarter of 2024.
“We are excited that our investments in our business are paying off and look forward to the rest of the year.”
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