LG Electronics, the South Korean consumer-electronics giant, is set to announce its fourth-quarter results on Thursday. Here’s a summary of what to expect:
Revenue Forecast
Preliminary forecasts indicate that LG Electronics’ revenue for the quarter ended December has increased by 5.9% year-on-year, reaching KRW23.157 trillion ($17.29 billion). According to a consensus forecast compiled by FactSet based on estimates from 10 analysts, the company is expected to report a net profit of KRW219.61 billion.
Key Points to Watch
Investors will be keen to see if LG Electronics has managed to maintain profitability during the quarter, displaying resilience amidst challenges arising from a slow recovery in demand for home appliances.
Although the projected quarterly result reflects a turnaround from the net loss reported in the previous year, it is worth noting that the margin has narrowed since the third quarter.
Of particular interest to investors is LG Electronics’ fast-growing vehicle-part segment. Analysts predict that revenue from this segment will surpass KRW10 trillion by 2023, bolstering the company’s sustained growth. In fact, LG Electronics anticipates achieving annual record revenue of KRW84.280 trillion by 2023.