The Gory Details on LG Display's Double Fumble

LG Display (NYS: LPL) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), LG Display missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank. GAAP earnings per share grew.


Gross margins dropped, operating margins increased, net margins expanded.

Revenue details
LG Display logged revenue of $5.74 billion. The 26 analysts polled by S&P Capital IQ foresaw a top line of $6.34 billion on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $6.05 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The two earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share. GAAP EPS were $0.26 for Q2 compared to -$0.27 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 5.6%, 550 basis points worse than the prior-year quarter. Operating margin was 5.6%, 200 basis points better than the prior-year quarter. Net margin was 1.6%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $6.41 billion. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $25.14 billion. The average EPS estimate is $0.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 302 members out of 326 rating the stock outperform, and 24 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give LG Display a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LG Display is hold, with an average price target of $14.07.

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The article The Gory Details on LG Display's Double Fumble originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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