Post Earnings Coverage as LG’s Quarterly Revenue Grew 18%

Upcoming AWS Coverage on Kyocera Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 2, 2017 / Active Wall St. announces its post-earnings coverage on LG Display Co., Ltd (NYSE: LPL). The Company disclosed its first quarter fiscal 2018 financial results on May 15, 2017. The maker of monitors and panels for TVs, phones and other products provided outlook for the upcoming quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of LG Display Co.’s competitors within the Diversified Electronics space, Kyocera Corporation (NYSE: KYO), announced on May 01, 2017, its consolidated financial results for the fiscal year which ended on March 31, 2017. AWS will be initiating a research report on Kyocera in the coming days.

Today, AWS is promoting its earnings coverage on LPL; touching on KYO. Get our free coverage by signing up to: http://www.activewallst.com/register/.

Earnings Reviewed

For the three months ended March 31, 2017, LG reported revenue of KRW 7,062 billion down 11% on a q-o-q basis from KRW 7,936 billion, driven by the reduction in area shipment due to limited capacity and job in blended Average Sales Price (ASP) coming from the lower share of mobile. The Company’s revenue increased 18% on a y-o-y basis compared to KRW 5,989 billion.

For Q1 2017, LG’s operating income came in at KRW 1,026 billion up 14% compared to Q4 2016 operating income of KRW 904 billion. The increase was primarily attributable to the upward ASP trend in large display, premium focused product mix such as large UHD TV’s, and high resolution high-end IT products as well as continuous cost saving efforts. LG’s reported quarter EBITDA totaled KRW 1,743 billion, up 7% compared to previous quarter EBITDA of KRW 1,624 and 104% from the year ago period EBITDA of KRW 853 billion.

During Q1 2017, LG’s area shipment was 10.07 million square meters, down 7% on a q-o-q basis shipment of 10.77 million square meters, primarily due to the tight supply amidst continuous size migration. The Company’s Capacity fell by mid-single percentage on a q-o-q basis, due to a fewer working days and usage for R&D for new products and OLED line conversion. LG’s ASP per square meters totaled $608 for the reported quarter, down from $642 in the prior year’s same quarter.

For Q1 2017, the Seoul, South Korea-headquartered Company reported net income of KRW 679 billion, or EPS of KRW 1,899, compared to net income of KRW 825 billion and EPS of KRW 2,305 in Q4 2016 and KRW 1 billion, or EPS of KRW 3, for Q1 2016. The Company’s net income declined 18% on a sequential basis, while it rocketed on a y-o-y basis.

Financial Performance

As on March 31, 2017, LG’s inventory was KRW 2,283 billion, almost flat on a q-o-q basis compared to KRW 2,288 billion, with inventory remaining low amid tight supply continuing mostly for a large sized TV panel. LG stated that it will closely monitor the market condition and maintain a tight inventory control. The Company’s cash at the end of Q1 2017 was KRW 2,303 billion, down by KRW 419 billion from the previous quarter.

Outlook

For Q2 2017, LG is projecting area shipment to be generally flat on a q-o-q basis, due to capacity limitation; however, the Company expects TV shipment to fall slightly or remain flat following the increase in large size panels. LG is predicting ASP to remain on the stable trend albeit with some fluctuations by size and product depending on the supply demand dynamics; however, the Company expects area ASP to drop by single digit percentage due to seasonality of small to mid-size products.

LG is estimating CapEx in FY 2017 to be higher than initially planned amidst growing demand for volume production of new technologies, but refused to reveal specific numbers.

Stock Performance

LG Display’s share price finished yesterday’s trading session at $14.64, slightly up 0.48%. A total volume of 545.48 thousand shares exchanged hands, which was higher than the 3 months average volume of 442.75 thousand shares. The Company’s stock price soared 20.79% in the last three months, 21.90% in the past six months, and 35.81% in the previous twelve months. Moreover, the stock surged 13.93% since the start of the year. The stock is trading at a PE ratio of 7.63 and has a dividend yield of 1.50%. The stock currently has a market cap of $10.08 billion.

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