Posco Holdings, the South Korean steelmaker, is set to release its fourth-quarter results on Wednesday. Here are the key details:
Revenue Expectations
According to a FactSet-compiled consensus forecast based on estimates from 14 analysts, Posco Holdings’ revenue for the quarter ended December is expected to decline by 3.0% compared to the previous year.
Bottom Line Forecast
The consensus among analysts is that Posco Holdings will report a net loss of 333.73 billion won ($250.2 million) for the final quarter of 2023. This follows a net profit of KRW550 billion in the previous quarter and a net loss of KRW737.00 billion in the same period a year earlier when flood damage severely impacted its main steel mill.
Stock Performance
During the fourth quarter, the stock experienced a 6.6% loss, dropping to KRW499,500. However, more recently, it has shown a 2.8% increase, trading at KRW435,000.
Key Factors to Consider
Investors are eagerly anticipating if Posco Holdings will end its streak of three consecutive quarters of net profit, which began in the first quarter of 2023. Market analysts have expressed concerns over growing pressure on the company’s earnings due to increased raw material and labor costs, while steel demand remains sluggish.
In addition, investors will be closely monitoring the performance of Posco Future M, a battery-material supplier affiliated with the holding company. There are fears among some analysts that a slowdown in global electric vehicle demand may negatively impact its earnings.