SEOUL, Mar. 26 (Korea Bizwire) — LG Electronics Inc., which enjoyed record earnings last year on the back of premium TVs and home appliance sales, is expected to post a robust performance in the first quarter of 2018.
According to data compiled by market tracker FnGuide from local brokerage houses, the market’s first-quarter consensus for LG Electronics’ operating profits came to 829.5 billion won (US$678.77) as of Friday.
Although the figure marks a roughly 10 percent drop from a year earlier, market watchers said it is still notable considering LG posted its second-highest quarterly earnings ever in the first three months of 2017.
Local securities firms forecast 15.2 trillion won in sales, up 3.7 percent from a year earlier.
“The home appliances and TV segments will all post operating margins hovering above 10 percent,” said Eugene Investment & Securities Co. in its report, claiming that the TV segment will enjoy improved profitability due to the expanded presence of high-end organic light-emitting diode (OLED) TVs in the company’s portfolio.
DB Financial Investment Co. recently revised up its first-quarter operating profit outlook for LG Electronics from 775 billion won to 1 trillion won, citing a brighter outlook in the home entertainment business.
Analysts added the company is set to maintain growth for all of 2018 on the back of its TV business.
“The growth will continue throughout the year,” said Eo Kyu-jin of eBest Investment & Securities Co. “Just as last year, the TV and home appliances businesses will expand sales of premium products and help maintain high profitability.”
“We also have bright expectations for new emerging products such as dryers, stylers, air purifiers and Pra.L.” Eo added. The Pra.L is the brand of LG’s home beauty electronics products.