By LG Electronics, the South Korean consumer-electronics giant, is set to release its third-quarter results on Friday. Here are the key details:
Net Profit Forecast
According to a FactSet-compiled consensus forecast, LG Electronics is expected to post a net profit of 377.00 billion won ($278.7 million) for the quarter ended September. This would represent a 12% increase from the previous year and more than double the profit of the previous quarter.
Revenue Forecast
Preliminary forecasts indicate that the company’s revenue is expected to decline by 2.2% year-on-year to KRW20.714 trillion. However, operating profit is projected to rise by 33% year-on-year to KRW996.70 billion.
What to Watch For
- Earnings Recovery: Investors will be keen to see if LG Electronics has maintained its recovery trend after returning to profit earlier this year, despite sluggish demand for home appliances and televisions.
- Vehicle-Component Segment: Analysts suggest that increased sales of vehicle parts may have offset weakness in the home-appliance segment, while cost-saving measures likely contributed to overall profitability. The vehicle-component segment is expected to make a greater profit contribution due to solid demand from clients.
- Outlook: Investors will also be interested in LG Electronics’ outlook on the recovery of consumer electronics demand ahead of the year-end shopping season.
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