By Kwanwoo Jun
Hyundai Motor is scheduled to report third-quarter results Thursday. Here is what you need to know:
NET PROFIT FORECAST: The South Korean car maker is expected to report a net profit of 2.907 trillion won ($2.16 billion) for the July-September period, according to a consensus forecast provided by FactSet. That compares with the KRW1.272 trillion profit recorded a year earlier.
REVENUE FORECAST: Hyundai Motor is expected to post revenue of KRW39.843 trillion and an operating profit of KRW3.568 trillion for the quarter, according to a FactSet consensus forecast.
WHAT TO WATCH:
–PROFIT RISE: Investors are looking to see if the company’s net profit will more than double from a year earlier on brisk sales of higher-end Genesis models and sport-utility vehicles, especially in North America.
–RECALLS: Hyundai Motor and its sibling company Kia issued recalls in September for more than 3.3 million vehicles in the U.S. due to a potential fire risk. The expected provisioning cost of the recall and its impact on earnings will be in focus for investors.
–EVs: The company’s outlook or update on its electric-vehicle business strategy will also be closely watched, as some market analysts say demand for EVs is cooling in China and Europe.
Write to Kwanwoo Jun at [email protected]
Read the full article here
