LG issued its second quarter guidance this morning, providing onlookers with a good idea of how well the company did over the past three months.
According to the company, both profit and revenue increased year-over-year from the same April to June period last year. Operating profit jumped by 14 percent to 664 billion won ($719 million CAD), while revenue increased a more modest 3.9 percent to 14.6 trillion won (16.3 billion CAD).
While those results are positive, they’re below what analysts predicted the company would report. Eighteen analysts polled by Reuters had forecast the company would report a profit of 755 billion won ($884 million CAD).
Worse yet, it’s likely LG’s mobile division is to blame for the company’s Q2 miss.
An analyst interviewed by Reuters estimates that LG’s mobile division lost more than 100 billion won ($111 million CAD) this past quarter. If he is correct, that means the company’s mobile outfit is due for its ninth straight quarterly loss.
LG didn’t comment on what caused another down quarter for its mobile outfit, but the consensus among analysts is that overall mobile device sales were down (the G6 likely did well, but not well enough to make up for all of LG’s less popular smartphones).
In addition, the company likely incurred increased marketing costs related to the G6’s recent launch.
Source: Reuters
