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ASM International NV (ASMIY) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic ...

In This Article:

  • Revenue: EUR779 million, a new quarterly high, up 6% year-on-year at constant currencies.

  • Spares and Service Sales: Grew by 45% year-on-year at constant currencies.

  • Equipment Revenue: Increased 22% year-on-year at constant currencies, led by ALD product line.

  • Gross Margin: 49.4%, up from 48.9% in Q3 2023.

  • SG&A Expenses: Decreased 1% year-on-year.

  • Net R&D Expenses: Increased by 36% year-on-year and 60% compared to the second quarter.

  • Operating Profit Margin: Increased to 28.2%, up from 25.3% in the same period last year.

  • Currency Translation Loss: EUR48 million in Q3.

  • Order Intake: EUR815 million, up 30% year-on-year at constant currencies.

  • Cash Position: EUR747 million, up from EUR637 million in the previous quarter.

  • Free Cash Flow: EUR242 million in the quarter.

  • CapEx: EUR13 million during the third quarter.

  • Share Buybacks: EUR93 million spent during the third quarter.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ASM International NV (ASMIY) reported a new quarterly revenue high of EUR 779 million, which was at the upper end of their guidance.

  • Spares and service sales grew by 45% year-on-year, driven by stronger-than-expected demand from China.

  • The equipment revenue increased by 22% year-on-year, led by the ALD product line, which accounted for the majority of equipment sales.

  • Gross margin improved to 49.4%, up from 48.9% in the previous year, due to favorable mix effects.

  • ASM International NV (ASMIY) achieved a strong free cash flow of EUR 242 million, contributing to an increase in cash reserves to EUR 747 million.

Negative Points

  • Net R&D expenses increased by 36% year-on-year, driven by headcount growth and higher amortization charges.

  • The company experienced a currency translation loss of EUR 48 million in Q3, compared to gains in previous quarters.

  • Results from investments decreased significantly, reflecting a downturn in the back-end equipment market.

  • Bookings from China dropped somewhat year-on-year and compared to Q2, despite being slightly higher than anticipated at the start of the year.

  • The power analog wafer segment sales were down significantly year-to-date, reflecting soft demand in industrial and automotive end markets.

Q & A Highlights

Q: Can you provide more details on the gate-all-around transition and its impact on next year's visibility? A: Hichem M'Saad, CEO: While we limit our comments to the full year 2025, it's too early to specify quarter-over-quarter trajectories. There is a relationship between backlog and sales, but it's not linear. We sometimes ship tools within the same quarter as they are ordered.