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What's in Store for LG Display (LPL) This Earnings Season?

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LG Display (LPL - Free Report) is expected to report second-quarter 2021 results on Jul 22.

Over the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate twice for as many misses, the average surprise being 47.8%.

In the last reported quarter, the company’s adjusted earnings climbed 31.8% year over year to 29 cents per share but missed the Zacks Consensus Estimate of 40 cents. Net sales surged 63.6% to $6.18 billion but fell short of the consensus mark of $6.21 billion.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $6.39 billion, suggesting a 46.8% jump from the year-ago quarter. The consensus mark for earnings is pinned at 44 cents, calling for a significant improvement from the loss of 58 cents reported in the year-ago quarter.

Let’s see how things have shaped up prior to this announcement.

Key factors

LG Display’s second-quarter performance is likely to have benefited from healthy demand for its display panels from PC vendors. PC vendors are witnessing heightened demand for notebooks and desktops amid the COVID-19 pandemic-induced remote working and online learning trends.

According to IDC’s Worldwide Quarterly Personal Computing Device Tracker, shipment of PCs that include laptops and tablets, desktops and notebooks, reached 83.6 million units in second-quarter 2021, up 13.2% on a year-over-year basis.

Travel restrictions and social-distancing measures amid the pandemic are driving demand for televisions as people need entertainment devices at their homes. This trend is anticipated to have boosted demand for LG Display’s TFT-LCD and OLED technology-based display panels during the to-be-reported quarter.

Strong sales for smartphones are also likely to have spurred demand for the company’s display panels during the quarter under review.

What Our Model Says

Our proven model does not predict an earnings beat for LG Display this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

LG Display currently carries a Zacks Rank of 4 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +0.66% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. (AAPL - Free Report) has an Earnings ESP of +3.40% and carries a Zacks Rank #2, at present.

Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +1.60% and holds a Zacks Rank of 2 currently.

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