LG Energy Solution (373220) Earnings: 2Q Operating Profit Falls Short of Estimates

LG Energy Solution on Smartkarma

Analysts on Smartkarma, a platform for independent investment research, have been closely covering LG Energy Solution‘s recent developments. Douglas Kim provided insight into a mandatory pre-announcement requirement for block deal sales in Korea starting 24 July. This requirement will impact potential block deal sales candidates, including LG Energy Solution. Major shareholders of Korean companies, like LG Energy Solution, must now publicly report prior to selling their stakes in block deal sales. Kim suggests that candidates for block deals, including LG Energy Solution, may continue to underperform compared to companies not involved in such sales in the coming weeks.

In another report by Douglas Kim on Smartkarma, LG Energy Solution faced a significant earnings miss in 4Q 2023. The company’s operating profit of 338.2 billion won fell 43.5% below consensus estimates. Following this disappointing performance, it is anticipated that consensus earnings estimates for LG Energy Solution in 2024 and 2025 will likely be reduced. Pressure on EV battery makers like LG Energy Solution to lower their prices has intensified due to major electric vehicle players, such as Tesla, reducing prices. Kim’s analysis leans bearish on LG Energy Solution following these negative developments in earnings.

A look at LG Energy Solution 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 Energy Solution, a company that primarily focuses on the production and sale of batteries, seems to have a mixed long-term outlook based on the Smartkarma Smart Scores analysis. While the company scores moderately on factors like Growth, Resilience, and Momentum, it falls short in terms of its Value and Dividend scores. This indicates that LG Energy Solution may have potential for growth and resilience in the market, but investors should be cautious due to lower scores in value and dividend payouts.

Overall, LG Energy Solution appears to be positioned well for growth and sustainability in the battery industry, with a global market presence for its various battery products. Investors may want to keep an eye on how the company navigates challenges related to its valuation and dividend offerings, while taking advantage of its potential for growth, resilience, and market momentum.

This summarises the business outlook for LG Energy Solution based on the provided Smartkarma Smart Scores:

Value: 2

Dividend: 1

Growth: 3

Resilience: 3

Momentum: 3

Company Description: LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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