LG Electronics (066570) Earnings: 4Q Operating Profit Falls Short of Estimates Despite Strong Sales

LG Electronics on Smartkarma

Analysts on Smartkarma are closely monitoring the developments surrounding LG Electronics. According to Tech Supply Chain Tracker, the China smartphone market experienced significant growth in Q3 2024 amidst trade tensions. LG Electronics expanded its manufacturing in India, but challenges were faced by liquid cooling for servers. Meanwhile, Royole Technologies filed for bankruptcy, and Taiwan focused on boosting defense autonomy. In another report, the Luxembourg startup sought EUR30M for global 5G IoT satellite expansion, while South Korea emphasized nuclear power for exports and next-generation iPhone 17 models will feature LTPO OLED panels.

Furthermore, analyst Devi Subhakesan highlighted LG Electronics India’s potential IPO, estimating a valuation of over USD10 billion. The company aims to raise significant funds to capitalize on the booming demand in India’s consumer durables sector. Sanghyun Park‘s insights reported that LG Electronics has selected JP Morgan and Morgan Stanley as lead underwriters for the Indian IPO. The company plans to raise around USD 700 million through a secondary offering, indicating a strategic move to strengthen its presence in the Indian stock market.

A look at LG Electronics Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

LG Electronics Inc., a company known for its wide range of digital display equipment and home appliances, is assessed using the Smartkarma Smart Scores indicating its overall outlook. With a strong Value score of 4, LG Electronics is considered favorably priced relative to its intrinsic value. Its Dividend score of 3 reflects a moderate ability to pay dividends consistently. Although Growth, Resilience, and Momentum scores are rated at 3, 3, and 2 respectively, suggesting steady growth potential, resilience against market fluctuations, and subdued price momentum.

In summary, LG Electronics Inc. stands out in terms of value and shows promising growth opportunities. Despite facing moderate challenges in dividends, resilience, and momentum, the company’s diversified product portfolio including flat panel televisions, A/V products, washing machines, air conditioners, and telecommunications equipment like smartphones and tablets positions it well for long-term success.

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