AI supply chain exposure splits Q3 outlook for Samsung, LG parts units
Exposure to the artificial intelligence (AI) supply chain is splitting the third-quarter earnings outlooks for LG Innotek and Samsung Electro-Mechanics. The former faces weaker earnings prospects because of its optics-heavy sales mix and sensitivity to foreign exchange fluctuations, while the latter is offsetting currency-related pressure with a growing contribution from multilayer ceramic…
Exposure to the artificial intelligence (AI) supply chain is causing differing views on Q3 earnings for LG Innotek and Samsung Electro-Mechanics. LG Innotek is facing weaker earnings prospects due to its optics-heavy sales mix and sensitivity to currency fluctuations, while Samsung Electro-Mechanics is offsetting the currency pressure with higher revenue from MLCCs and semiconductor substrates, according to market tracker FnGuide.
LG Innotek's consensus estimate for Q3 operating profit was 202.9 billion won, a 32.8% decrease from the previous month, while revenue was forecast at 6.1 trillion won, down from 6.32 trillion won. This negative earnings outlook has led to a 15.47% drop in LG Innotek shares on Monday. The main reason for this is the impact of currency fluctuations, as sales are being affected by changes in the won's value when purchasing or producing raw materials and inventories.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
