LG Electronics Forecasts 61% Rise in Second-Quarter Profit — Update
By Kwanwoo Jun
LG Electronics expects its second-quarter operating profit to rise 61% from a year earlier, likely led by solid demand for home and business appliances.
The South Korean consumer-electronics giant said in a preliminary earnings report Friday that its operating profit could come in at 1.196 trillion won ($865.3 million), compared with profit of KRW741.90 billion a year earlier.
The projected earnings beat a FactSet-compiled consensus estimate of KRW977.00 billion.
Revenue is expected to have risen 8.5% to KRW21.701 trillion, LG said, above the FactSet-compiled consensus forecast.
LG Electronics didn't provide additional details. It is due to release its full quarterly earnings later this month.
Analysts said demand for LG's home and business appliances likely remained strong. They are upbeat on the company's heating, venting and air-conditioning business, citing demand from artificial-intelligence data centers.
The company likely enjoyed brisk demand for air conditioners and higher shipments of organic light-emitting diode televisions, while its vehicle-component business likely managed to weather the recent slowdown in electric-vehicle demand due to a large backlog, they said.
Shares were 1.7% higher early Friday after its preliminary earnings report.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
July 04, 2024 21:54 ET (01:54 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst