02:11 PM EDT, 10/16/2024 (MT Newswires) -- ASML's (ASML) US-listed shares extended losses into a second straight day as the Dutch chip equipment maker said Wednesday that softness in mobile and personal computer markets was contributing to a slower-than-expected recovery in its logic division.

On Tuesday, the company reported fiscal third-quarter financial results that exceeded analyst expectations. However, ASML said it expected 2025 net sales to be between 30 billion euros ($32.59 billion) and 35 billion euros, lowering the upper end of its previous range that indicated 40 billion euros. Analysts polled by Capital IQ are looking for 34 billion euros.

"While we continue to view (artificial intelligence) as a key driver of the industry recovery with potential upside, we see other segments recovering more slowly than anticipated," Chief Executive Christophe Fouquet said on an earnings conference call Wednesday, according to a Capital IQ transcript. The company sees the recovery extending "well into" next year, Fouquet added.

ASML's US-listed shares were down 5.1% in Wednesday afternoon trade. This followed a 16% plunge in the previous session, making it the worst performer on the Nasdaq Composite on Tuesday. Year to date, the stock is down 9.5%.

"In logic, the slow recovery of end markets, such as mobile and PC, together with specific competitive foundry dynamics has resulted in a slower ramp of new nodes at certain customers who are, as a result, pushing out some of their fabs and changing their (lithography) demand timing," Fouquet told analysts. "In memory, the slower market recovery is also resulting in limited capacity addition."

Logic chips enable electronic devices to complete a task, while memory chips store information, according to information posted on ASML's website.

The 2025 sales outlook adjustment is driven largely by "a significant reduction" in the company's projected shipments of its Low-NA technology to fewer than 50, Chief Financial Officer Roger Dassen said on the call. ASML expects its China sales to be roughly 20% of the company's 2025 total revenue, trending back towards its historical percentage for that market, Dassen added.

In a separate Tuesday statement, ASML said it published its third-quarter results ahead of schedule to ensure transparency after information relating to the quarter was "erroneously published" on its website. For the current quarter, the company projects net sales of 8.8 billion euros to 9.2 billion euros, with 2024 sales seen "around" 28 billion euros. The Street is looking for 9.06 billion euros and 27.72 billion euros, respectively.

In the longer term, secular growth drivers in the semiconductor end markets are "still very much intact," Fouquet said on the Wednesday call. ASML will continue to build capacity to respond to an increase in AI demand that the company forecasts "throughout the remainder of this decade," Fouquet added.

Price: 683.67, Change: -46.76, Percent Change: -6.40