Earnings Alerts

LG Energy Solution (373220) Earnings: 1Q Operating Profit Surpasses Estimates with Sales at 6.27 Trillion Won

  • LG Energy reported an operating profit of 374.7 billion won for Q1, significantly surpassing the estimated 71.27 billion won.
  • The company’s sales reached 6.27 trillion won, exceeding the anticipated 6.06 trillion won.
  • Despite strong financial results, LG Energy shares fell by 2.6%, closing at 0.32 million won with 88,385 shares traded.
  • Analyst recommendations include 22 buys, 10 holds, and 3 sells for LG Energy’s stock.

LG Energy Solution on Smartkarma

Analysts Sanghyun Park and Douglas Kim on Smartkarma have offered insights on LG Energy Solution. Sanghyun Park‘s research highlights LG Chem’s potential tax issues, with a looming 200-300 billion KRW Pillar Two tax hit next year. Park suggests a potential block deal involving LGES shares, advising investors to consider shorting LGES or a long-short strategy with LG Chem in light of the tax burden. Meanwhile, Douglas Kim discusses the impact of a Trump presidency on the Korean rechargeable battery sector, anticipating further challenges due to potential changes in consumer tax credits for electric vehicles. Kim predicts downward revisions in earnings estimates for key players in the sector in the near future.


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 leading battery manufacturer, has received positive yet mixed assessments according to Smartkarma Smart Scores. While the company scores moderately on factors like Value and Growth, its Dividend and Resilience scores are lower. However, the company shows promising signs of Momentum, indicating a potential for growth in the future. With a diversified product line that includes automobile batteries, small batteries, and energy storage system batteries, LG Energy Solution is well-positioned to capitalize on the growing demand for energy storage solutions worldwide.

In summary, LG Energy Solution is a global player in the battery industry, offering a range of products to meet consumer needs. The company’s Smart Scores suggest a decent overall outlook, with room for improvement in certain areas. Investors may want to closely monitor LG Energy Solution for any developments that could impact its long-term performance in the dynamic energy storage 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars