LG Q2 Guidance Slips Below Analyst Forecasts
LG has forecast lower-than-expected Q2 results, with profit tipped to hit 771 billion won ($691.11 million) versus 821 billion won analysts projected.
For the period April to June, LG expects operating profit to climb 18.5% YoY, and revenues to rise 3.2% year-on-year to 15 trillion won.
The figure is less than analyst projections for 15.5 trillion in revenue.
The South Korean giant claims higher marketing expenses for its appliance, TV and smartphone division hampered Q2 results.
The guidance follows LG’s bumper results in January to March, culminating in its highest profit result in nine years.
Strong sales of LG’s high-profit-margin premium TVs were credited for stellar results.
LG has not provided further information about Q2 results, however, is scheduled to announce full year earnings at the end of July.
Following the release of its earnings guidance, shares in LG Electronics closed 2.7% lower.
Industry rival, Samsung, has also released its preliminary quarterly forecast, with a 5.3% increase in profit expected to 14.8 trillion won – notably its slowest growth in over a year, following weaker-than-expected smartphone sales.