By Kwanwoo Jun
LG Energy Solution’s shares rose sharply after its preliminary third-quarter earnings forecast beat market expectations.
Shares of the South Korean electric-vehicle battery maker rose as much as 8.3% to 496,500 won ($369.79) in early trade Wednesday, on course to notch their sharpest daily percentage gain in 20 months and outperforming the benchmark Kospi’s 2.5% gain, according to FactSet.
The stock advanced after the company, which supplies EV batteries to General Motors and other global car makers, said it expects its operating profit to jump 40% on year to KRW731.20 billion for the July-September quarter, beating the FactSet-compiled market consensus forecast of KRW649.65 billion.
LG Energy said its preliminary quarterly operating profit reflected an estimated KRW215.5 billion from U.S. tax credits available to the company under the Inflation Reduction Act.
It said it expects third-quarter revenue to rise 7.5% on year to KRW8.224 trillion.
Write to Kwanwoo Jun at [email protected]
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