Earnings guidance for LG Electronics has shown that the company expects Q1’16 to be its best trading period in almost two years. Its operating profit is projected to rise 66% YoY. Earnings have been boosted by rising appliance sales, lower TV panel prices and the weakness of the South Korean won.
Q1 profit is expected to reach KRW505 billion ($441 million): the best result since Q2’14, and above a Thomson Reuters forecast of KRW408 billion ($355.3 million). Revenue in the period is estimated to be KRW13.4 trillion ($11.7 billion), down 4.5% YoY.
Despite the positive forecast, analysts expect LG’s mobile communications division to report its third straight quarterly loss.
This is the first time that LGE has released official earnings guidance before the full publication of its results.
