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Trending tickers: ASML, Asos, LVMH, JustEat

The latest investor updates on stocks that are trending on Wednesday

ASML Asos - Lois Opoku seen wearing Julian Daynov x Rossi beige suit pants, Hermes Kelly white leather yellow gold belt, Zara white blouse, Hermes beige and rosé Birkin 25 bag with orange details, ASOS golden statement earrings and Zara feather light green heels on April 01, 2024 in Berlin, Germany. (Photo by Jeremy Moeller/Getty Images)
Asos shares rose 4% in London on Wednesday. While ASML shares fell despite profits beating expectations. (Jeremy Moeller via Getty Images)

ASML (ASML)

ASML, the largest supplier of equipment to computer chip makers, said first quarter profit beat expectations on Wednesday, however, sales missed forecasts, which sent shares lower.

Net sales fell 21.6% year-on-year while net income dropped 37.4%, it revealed. ASML’s net sales fell in the middle point of the company’s guidance.

Net bookings for ASML’s machinery, came in at €3.6bn (£3.08bn, $3.83bn) in the first quarter, down 4% year-on-year but plunging nearly two thirds versus the December quarter.

The company kept its financial forecasts unchanged, with sales seen flat from 2023's €27.6bn. It is set to benefit from new chip plants planned with support from governments in Taiwan, South Korea, Japan, China and the United States.

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Read more: FTSE 100 LIVE: European stocks push higher as UK inflation falls less than expected

Ben Barringer, technology analyst at Quilter Cheviot, said: "There a number of factors at play; the economic environment is still incredibly uncertain and thus customers are not ordering in the same quantities as they have done previously; there is a transition in product in 2025 so some may just be holding off and preserving any spend; it’s still early in the year and things may turn around; and finally, China sales are good but difficult to gauge as to what will happen going forward.

"For ASML, this is no time to panic. Investors and industry watchers remain focused on 2025 given the introduction of new products and the fact that 2024 remains a year of recovery for the sector."

Asos (ASC.L)

Asos shares rose 4% in London on Wednesday despite the company announcing widening losses as half-year sales plunge by nearly a fifth.

The group said underlying pre-tax losses came in at £120m for the six months to March against losses of £87.4m a year ago.

Like-for-like sales at the online retailer fell 18% on an adjusted basis in the first half and it confirmed it still expects sales to fall by up to 15% over the full year.

Nevertheless, underlying earnings in 2024-25 financial year are set to be “significantly” higher than the previous two years as it reduces costs and cuts stock levels.

Jose Antonio Ramos Calamonte, chief executive, said this financial year was "about taking the necessary action to get us to that path”.

He added: "When we do the right clothing at the right price, consumers fly into it," he said, highlighting strong sales of denim, skirts and animal prints this spring.

Asos also named former Sainsbury's and Amazon executive Dave Murray as its new chief financial officer, saying that his e-commerce experience would help return the group to profitability.

LVMH (MC.PA)

LVMH, the world’s largest luxury group which owns brands like Louis Vuitton, Tiffany, and Dior, revealed rising sales in the first three months of the year, sending shares 4.6% higher at the time of writing.

Results came in broadly in line with group organic revenue, up 3% to €20.7bn (£17.7bn), whilst its key fashion and leather goods division saw organic revenue growth of 2%.

It comes as investors have been previously concerned about a slump in the luxury sector as consumers grapple with high interest rates.

Read more: Multiple interest rate cuts less likely this year after inflation blow

Sales in Asia, excluding Japan, were down 6%, however, purchases by Chinese shoppers globally grew 10, benefitting from the end of zero COVID policy in the country.

LVMH, which is Europe's second-largest listed company and worth almost €400bn, is the first luxury goods maker to report quarterly sales this year amid slowdown worries.

Mario Ortelli, of luxury advisory firm Ortelli, said: “The market environment is challenging, especially in China, and LVMH was able to navigate it in line with expectations.”

JustEat (JET.L)

Just Eat shares failed to deliver after it posted first-quarter orders below expectations. The stock tumbled as much as 5% on the back of the news.

Total orders came in at 214.2 million in the first-quarter, lower than the company-provided consensus of 217.1 million, as quoted by Deutsche Bank, and the 220.2 million expected by the brokerage.

This marked a slight improvement on the 7% fall in the previous three months, but was still worse than expected.

It posted a gross transaction value (GTV) of €6.55bn for the first three months of the year, matching analysts' average estimate in a company-provided consensus.

Its GTV grew by 11% in key UK and Ireland markets and by 5% in Northern Europe, offsetting an 11% drop in North America and a 15% decrease in Southern Europe and Australia, the company said.

"Just Eat Takeaway continues to disappoint on orders, which becomes the name of the game in a disinflationary period," said Bryan Garnier analyst Clement Genelot in an e-mailed comment.

The group added that it was still exploring a partial or full sale of its struggling American unit Grubhub, while on Monday it announced its exit from New Zealand.

Jitse Groen, chief executive of Just Eat Takeaway.com, said: “Just Eat Takeaway.com started the year well, with the acceleration of GTV growth in UK and Ireland and our continued momentum in northern Europe in the first quarter of 2024.

“We are excited that the investments in our business are paying off, and we are looking forward to the rest of the year.”

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