2Telecom stocks split ahead of earnings season, KT warns of an earnings shock
Brokerages say 2KT is being warned of an earnings shock that could fall short of forecasts in quarterly results, while SK Telecom is expected to post relatively solid earnings. Investor attention is focused on the two companies’ quarterly results announcements and related disclosure items.
Brokerages are 2warning that KT could face an earnings shock, with quarterly results coming in below forecasts, while SK Telecom is expected to report relatively solid performance. As a result, market expectations are emerging that the results sheets of the country’s leading telecom stocks will diverge.
KT has been warned that its results could come in below some securities firms’ estimates. Depending on which items posted losses, or whether one-time costs are included, the final announcement could differ.
There is also an opinion that SK Telecom is likely to move close to market expectations, or even exceed them. It is noted that changes in the composition of additional business revenue, along with stable revenue based on the telecom business, could affect earnings.
The quarterly earnings announcements from the two companies are drawing investor attention. In particular, operating profit, the share of revenue by service, and disclosure of one-off profit and loss items are seen as key variables.
The warnings and outlooks from the securities industry are estimates made before the earnings announcements. Once the final results are released, industry and investor assessments may change.
Until the earnings announcement date, it is important to check the quarterly consensus (market estimates) and the companies' disclosures. If special gains or losses, or abnormal items, are revealed in the disclosures, stock price volatility may increase.
Sources: 매일경제 증권
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