Brokerages cut earnings forecasts for key listed firms

By Yonhap

Published : Aug 13, 2017 - 09:59
Updated : Aug 13, 2017 - 09:59

South Korean securities companies have cut their estimates of third-quarter earnings for major listed companies amid investor sentiment battered by growing geopolitical risks on the Korean Peninsula, a market tracker said Sunday.

The market consensus of the combined operating profit of 207 listed companies stands at 48.56 trillion won ($42.4 billion) for the July-September period, down 486 trillion won from a month earlier, according to FnGuide.

Hit by the government push for eco-friendly energy policy, state power monopoly Korea Electric Power Corp. has suffered the biggest setback, with the consensus operating profit sinking to 3.14 trillion won from 3.57 trillion won.

(Yonhap)


Top-cap Samsung Electronics, flat-panel giant LG Display, No. 2 automaker Kia Motors and leading auto parts maker Hyundai Mobis saw their forecasts of third-quarter operating profit drop by more than 100 billion won.

Brokerages' average projection of Samsung's operating profit fell to 14.09 trillion won from 14.46 trillion won.

FnGuide said local securities companies have revised down their operating profit forecasts for 112 companies while upgrading estimates for 81 firms. Market consensuses for the remainder stayed unchanged.

Tensions between North Korea and the United States have been escalating over Pyongyang's nuclear and missile programs, with both sides engaging in a bitter war of words.

"It is certain for third-quarter operating profits to be better than the previous quarter, but brokerage houses are starting to downgrade their predictions in the wake of tough government property policies and other measures," said Kim Dong-young, an analyst at Samsung Securities Co. (Yonhap)
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