By Kwanwoo Jun
LG Electronics Inc. said Wednesday it expects a 30% on-year rise in fourth-quarter operating profit, though the forecast is well below market expectations.
The South Korean home-appliance giant /zigman2/quotes/209966407/delayed KR:066570 +0.74% said in pre-earnings guidance it anticipates operating profit of 98.60 billion South Korean won ($84.4 million) for the last three months of 2019, compared with KRW75.70 billion a year earlier.
The quarterly earnings forecast missed a FactSet consensus estimate of KRW266.84 billion.
The company expects revenue at KRW16.061 trillion for the quarter, up 1.8% from KRW15.772 trillion a year ago. The forecast is below the FactSet consensus of KRW16.409 trillion.
LG Electronics forecasts 2019 revenue to increase 1.6% from a year earlier and for operating profit to drop 10%.
LG Electronics is expected to release fourth-quarter and full-year results later in January.
The company’s shares closed 4% lower after LG Electronics reported weaker-than-expected earnings forecasts.