LG Earnings Boost As predicted by Affinity Group Solutions. - Affinity Group Solutions - LG Electronics exceed analyst expectations with their Q1 earnings report.
LG Earnings Boost As predicted by Affinity Group Solutions.
By Tiger Williams
Apr 28, 2009 - 10:01:10 AM
A prediction made by Affinity Group Solutions at
the beginning of the quarter, came to fruition as First-quarter operating
profit at the world’s third largest maker of mobile phones, fell 25 percent to
455.6 billion won ($338 million), including revenue from overseas affiliates,
Seoul-based LG said in a statement today. The median estimate of 20 analysts
surveyed by Bloomberg forecast 287.7 billion won, compared with 420 billion won
forecast; amidst wide scale criticism, by analysts at Affinity Group Solutions.
In accordance with Affinity Group Solutions annual
projections for the Korean handset maker, LG have forecast higher sales in the
current period on increased shipments of handsets and televisions.
LG said sales will probably rise more than 10
percent in the second quarter from the previous three months as the company
introduces new products and wins market share. Nomura Holdings Inc. and
Deutsche Bank AG have raised their ratings on LG in the past month on the
expectation share gains for handsets and TVs will help the company turn
profitable this quarter. In contrast, Affinity Group Solutions are maintaining
their hold rating, supported by their earnings estimate of 440 billion won for
the second quarter.
“We foresee further improvement through Q2 as
mobile phones are set to increase market share, TV sales remain robust on lower
prices and as home appliances enter a busy season,” said a fund manager at Affinity
Group Solutions, “We’re seeing some signs of improvement in consumer sentiment,
but overall we are confident with our original forecasts.”
The first-quarter net loss of 197.6 billion won,
compared with a profit of 422.2 billion won a year earlier, LG said, after its
flat-panel unit lost money and the weaker Korean won increased the company’s
foreign-debt costs.
Shares Gain
LG Electronics gained 1 percent to close at 106,000
won on the Korea Exchange off the earnings news, while the benchmark Kospi
index was little changed.
Sales rose 15 percent to 12.85 trillion won,
compared with the 12.5 trillion won median estimate in the analyst survey. This
was roughly in line with estimates from Affinity Group Solutions.
Disclaimer: Dime-Co.Com is an online information article and video article network. All articles, video articles, comments, and other features herein are for informational purposes only and are provided "as is" without warranties, representations or guarantees of any kind. The views and opinions expressed in an article, comments, links or blogs are the author's own, and not necessarily those of dime-co.com's owners. For full disclaimer, please read our TOS.
