- LG Display Co Ltd LPL reported third-quarter FY21 revenue growth of 7% year-on-year to KRW 7.2 trillion.
- The increased shipments of its panels for IT products drove the growth.
- The gross margin expanded 560 bps to 18.1%. The operating profit rose 222% Y/Y to KRW 529 billion, with the margin expanding by 490 bps to 7.3%.
- In comparison, operating profit declined 25% Q/Q due to falling LCD TV panel prices, increased material costs due to the industry’s component shortage, and increased expenses from the ramp-up of new facilities.
- The EBITDA of KRW 1.696 trillion compares to KRW 1.228 trillion Q3 2020. The margin expanded 440 bps to 23.5%.
- It held KRW 4.2 trillion in cash and equivalents at the end of the quarter.
- The company generated KRW 1.48 trillion in operating cash flow.
- LG Display’s large-sized OLED business continued to strengthen its position in the market as the premium TV sector continued to grow.
- The panel shipments in Q4 are likely to increase by mid-10% compared to Q3, with the delayed shipments affected by the industry’s component shortage predicted to return to normal.
- While the prices of LCD TV panels are likely to remain on a downward trend, ASP (Average Selling Prices) per square meter will likely rise slightly thanks to an increase in shipments of mobile products with higher ASP.
- Outlook: LG Display expects to achieve the annual sales goal of 8 million OLED panels and record yearly profit in 2021.
- Price Action: LPL shares closed higher by 1.97% at $7.77 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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