BUZZ-ASM International falls as Q4 orders miss market expectations

Shares in ASM International ASMI.AS fall 2% after the computer chip equipment maker reported on Tuesday Q4 orders below market expectations, due to cylical slowdown in the automotive and industrial end markets

ASMI posts its Q4 orders of 677.5 million euros ($711.58 million), down from 731.4 million a year earlier, missing J.P. Morgan's estimates by 6.6% and 7.5% below consensus, cited by JPM

"Taking into account the recently announced new U.S. export controls and as communicated in our press release of Dec 4, 2024, our China revenue is expected to decrease in 2025, with equipment sales from this market falling in a range of low-to-high 20s percentage of total ASM revenue," the company says in a statement

"Management had guided the market to a sequential order decline from Q3 to Q4, but we would have expected the decline to be less severe and would have expected a decline of 3-5%. The key reason for the decline is a continued weak Chinese market, and not a lack of interest for GAA related products,", Stifel says

The Dutch company also expects Q1 revenue to be in a range of 810 million euros and 850 million euros vs analysts' estimates of 819 million euros, according to LSEG

Stifel adds ASMI's orders missed consensus estimates by 7%, even if it's Q1 sales guidance beat expectations

($1 = 0.9521 euros)