What you need to know
- LG has reported earnings of $622 million for Q4, the biggest quarterly profit in three years driven in part by shipments of the iPhone.
Lg has today reported bumper Q4 earnings and its biggest profit in three years thanks to sales and demand for the iPhone 12.
From Nikkei Asia:
South Korea's LG Display Co Ltd reported its highest quarterly profit in over three years on Wednesday, returning to the black for a second quarter in a row with help from increased shipments of Apple Inc's new iPhones.
The Apple supplier posted an operating profit of 685 billion won ($622 million) in the 2020 fourth quarter, compared with a loss of 422 billion won in the same period a year earlier.
As the report notes, that's LG's highest quarterly profit since the second quarter of 2017, and well ahead of market expectations. In a statement, LG stated that the global work-from-home situation had continued to drive strong demand for TV and It products. Shipments of OLED panels rose for both smartphones and TVs, and earnings were buoyed by full-scale production at its OLED plant in Guangzhou.
The report notes how increased OLED panel shipments for iPhone 12 and higher LCD prices have also helped LG.
Nikkei notes recent Counterpoint data suggesting iPhone shipments in Q4 are likely up some 21% compared to last year. It is expected this strong demand and performance will also help LG in the coming quarter.
The news comes just hours ahead of Apple's own earnings call, where it is expected to post quarterly revenue in excess of $100 billion for the first time ever. From recent reports:
JP Morgan analyst Samik Chatterjee says that the company will accomplish the feat due to the success of the iPhone 12 lineup as well as continued demand for its entire product lineup from consumers and businesses working and learning at home.
The momentum from those areas are driving JP Morgan's revenue estimate of $110 billion and its earnings-per-share (EPS) estimate of $1.56. Both numbers are higher than the Wall Street consensus of $102 billion in revenue and a $1.41 EPS.