LG Energy Solution (373220) Earnings Update: 1Q Operating Profit Misses Estimates

LG Energy Solution on Smartkarma

Smartkarma, an independent investment research network, has recently published articles on LG Energy Solution, a leading EV battery maker. According to Douglas Kim‘s report, LGES experienced a major earnings miss in the fourth quarter of 2023, causing a decrease in earnings estimates for 2024 and 2025. This could be attributed to the pressure from other EV players, such as Tesla, to reduce prices. As a result, LGES may face challenges in maintaining its profitability in the future.

Sanghyun Park‘s article delves into the possibility of LG Chem, the parent company of LG Energy Solution, opting for a block deal to meet its fundraising needs. With the global minimum corporate tax and FEOC challenges, many companies in Yeouido are shifting towards block deals instead of equity issuances. Local brokerages are actively seeking potential block deals, and LG Chem may consider a short-term one to reduce its stake in LG Energy Solution. However, timing could be an issue, and it may be more feasible to plan for a block deal in January based on market corrections. Additionally, the abundance of liquidity in LG Energy’s futures could ease concerns about trading instruments.

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 produces and sells batteries, has a long-term outlook that is looking promising based on the Smartkarma Smart Scores. The scores, which range from 1 to 5, indicate the overall outlook for the company. LG Energy Solution has received a score of 2 for Value, 1 for Dividend, 5 for Growth, 3 for Resilience, and 3 for Momentum. This means that the company is performing well in terms of growth and momentum, and has a strong resilience. These factors are important for a company’s long-term success.

With a focus on producing and selling batteries for various industries, LG Energy Solution has a wide market reach. The company’s products include automobile batteries, small batteries, and energy storage system batteries. These products are in high demand worldwide, giving LG Energy Solution a strong foundation for future growth. Additionally, the company’s high score in Growth indicates that it is expected to continue expanding and improving in the long-term. This, along with its strong resilience and momentum, makes LG Energy Solution a company to watch in the battery industry.

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