Earnings Alerts

LG Energy Solution (373220) Earnings: Q4 Sales Miss Estimates with 225.5 Billion Won Operating Loss

  • LG Energy’s fourth-quarter sales totaled 6.45 trillion won, falling short of the estimated 6.83 trillion won.
  • The company reported an operating loss of 225.5 billion won, contrasting with the anticipated profit of 16.36 billion won.
  • Following the report, LG Energy shares dropped by 2.3% to a price of 0.37 million won.
  • A total of 54,240 shares were traded following the earnings announcement.
  • Analyst recommendations include 20 buys, 8 holds, and 2 sells.

LG Energy Solution on Smartkarma

LG Energy Solution is under scrutiny by analysts on Smartkarma, with insights provided by Sanghyun Park and Douglas Kim. Sanghyun Park‘s research, “LG Chem’s Tax Alarm: Pillar Two Tax Could Soar Next Year + LGES Block Deal on the Horizon,” highlights concerns over LG Chem’s tax situation, predicting a potential 200-300 billion KRW tax hit from Pillar Two next year. The report suggests LG Chem may reconsider selling part of its LG Energy Solution stake to shift the tax burden, presenting opportunities for shorting LG Energy Solution or engaging in a long-short strategy with LG Chem to navigate the impending challenges.

Douglas Kim‘s analysis, “Negative Trump Trade: Korean Rechargeable Battery Sector,” brings attention to how the rechargeable battery sector in Korea could face further difficulties with Trump as the President of the United States. The report outlines potential risks such as the elimination or reduction of the $7,500 consumer tax credit for electric vehicle purchases, impacting earnings estimates for key players in the Korean rechargeable battery sector. Overall, analysts are advising caution and strategic positioning in light of these developments affecting LG Energy Solution and the broader industry.


A look at LG Energy Solution Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth2
Resilience3
Momentum3
OVERALL SMART SCORE2.2

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 specializing in battery production, has received varying Smart Scores across different factors. While the company shows moderate performance in terms of value and growth, it lags behind in dividend payouts. However, LG Energy Solution exhibits strong indicators of resilience and momentum in the market. With a focus on innovation and market adaptability, the company is well-positioned to weather challenges and maintain a steady growth trajectory over the long term.

LG Energy Solution‘s overall outlook, as indicated by the Smart Scores, suggests a promising future ahead. The company’s strong resilience and positive momentum point towards a stable and potentially lucrative investment opportunity. Despite some areas of improvement, such as enhancing dividend payouts, LG Energy Solution‘s global presence and diverse product range position it favorably for long-term success in the competitive battery market.


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.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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