LG Electronics stocks closed at 185,700 KRW on the 6th, marking a 52.69% decline from the June 2 closing price of 392,500 KRW, according to Korea Exchange data. The company is scheduled to announce Q2 preliminary earnings on the 7th. Market attention is focused on whether the earnings release will serve as a catalyst for a stock rebound. Analysts project strong Q2 performance, with consensus estimates showing revenue of 22.7949 trillion KRW (up 9.9% year-over-year) and operating profit of 1.4226 trillion KRW (up 122.5% year-over-year), based on FnGuide data compiled over the past month.
LG Electronics Stocks Fall 52.69% From June 2 High
LG Electronics closed at 185,700 KRW on the 6th, down 5,300 KRW (2.77%) from the previous trading day, according to Korea Exchange. The closing price represents a 52.69% decline from the June 2 closing price of 392,500 KRW, when the stock reached a 52-week high amid expectations of collaboration with NVIDIA.
Analysts Forecast Q2 Revenue of 22.7949 Trillion KRW
Securities firms expect LG Electronics to report strong Q2 results. FnGuide consensus data compiled over the past month shows projected Q2 revenue of 22.7949 trillion KRW, up 9.9% year-over-year, and operating profit of 1.4226 trillion KRW, up 122.5% year-over-year.
US Tariff Refund Estimated at 300 Billion KRW
US tariff refunds are cited as a key factor in earnings improvement. Choi Bo-young, researcher at Kyobo Securities, stated, "It is estimated that a significant portion of the import tariff application amount was refunded," adding, "We conservatively estimate the related amount at around 300 billion KRW." This figure represents one-fifth of LG Electronics' Q2 operating profit consensus.
LG Innotek Q2 Operating Profit Projected at 190.8 Billion KRW
LG Innotek's performance improvement is expected to contribute positively to LG Electronics' consolidated earnings. LG Electronics holds over 40% of LG Innotek shares, according to the Financial Supervisory Service's electronic disclosure system. FnGuide consensus data compiled over the past month projects LG Innotek's Q2 revenue at 4.9997 trillion KRW (up 27.1% year-over-year) and operating profit at 190.8 billion KRW (up 1,574.7% year-over-year).
Home Appliance and Vehicle Solutions Divisions Record Structural Improvements
Analysts note structural improvements in LG Electronics' profit capacity. Choi stated, "Structural improvements will be added, including efficient logistics and raw material management effects in the Home Appliance & Solutions (HS) division and the Vehicle component Solutions (VS) division's sixth consecutive quarter of profitability."
AI Data Center Cooling Systems Enter Final Qualification Testing
Expectations are growing for valuation re-evaluation as new businesses materialize. Kim Min-kyung, researcher at Hana Securities, stated, "The cooling system for AI data centers has entered the final stage of qualification testing with North American hyperscaler customers, and revenue contribution is expected to begin within 6 to 9 months after final test completion." Kim added, "The robotics business is building a data factory for humanoid robot learning," and "From a mid- to long-term perspective, it is judged that this will lead to business expansion possibilities across the household and industrial robot markets."
FAQ
What is LG Electronics' stock price decline from June 2?
LG Electronics stocks closed at 185,700 KRW on the 6th, down 52.69% from the June 2 closing price of 392,500 KRW, according to Korea Exchange data.
When will LG Electronics announce Q2 preliminary earnings?
LG Electronics is scheduled to announce Q2 preliminary earnings on the 7th, according to financial investment industry sources.
What are analyst estimates for LG Electronics' Q2 operating profit?
Consensus estimates project LG Electronics' Q2 operating profit at 1.4226 trillion KRW, up 122.5% year-over-year, based on FnGuide data compiled over the past month.
