LG on track to produce its most profitable quarter in 2 years

LG on track to produce its most profitable quarter in 2 years
LG released its earnings guidance for the first quarter today, and yes, "Life's Good" to quote the company's own tag line. The company says to expect it to report operating profit of $440.7 million for the three months, up 65.5% from the $266 million reported a year earlier. This will be LG's most profitable quarter since Q2 of 2014. The guidance beat the estimates of $356 million for the quarter that was forecast by 25 analysts surveyed by Thomson Reuters I/B/E/S.

Revenue, on the other hand, was down 4.5% on a year-over-year basis to $11.4 billion from last year's $11.9 billion. The company's latest and greatest flagship phone, the LG G5, has just been released this month and won't have any impact on LG's financials until the release of the next quarterly report.

A more complete breakdown of the first quarter will be announced later this month. At that time, we should hear how many handsets LG sold from January through the end of March. During that period, the LG G4 was the manufacturer's flagship smartphone, and the Nexus 5X was still generating revenue.


source: Reuters

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23 Comments

1. vliang86

Posts: 337; Member since: Oct 05, 2015

I would buy an LG flagship like the G5 over Samsung flagship any day! Because of the price...

2. tyrionTheWise unregistered

You mean how it's priced 50-100$ higher than S7. Most users tend to pay less for phones, but whatever floats your boat man. Prices depend heavily on country by country basis. For example, Samsung has manufacturing plant in my country making their products quite cheap. On the other hand, LG has to pay the import duty making their phones 30-35% more expensive than other regions. In some countries, the G5 may be cheaper. But even if you take a neutral country(to LG's and Samsung's home country), the G5 costs more. Here are the pricing's of international variants of G5 and S7: http://www.amazon.com/LG-H860N-Snapdragon-Quad-Core-Smartphone/dp/B01DAOZ9GC/ref=sr_1_1?ie=UTF8&qid=1460392941&sr=8-1&keywords=G5 http://www.amazon.com/Samsung-Galaxy-Unlocked-Phone-International/dp/B01CJU9126/ref=sr_1_1?s=wireless&ie=UTF8&qid=1460392968&sr=1-1&keywords=S7

7. jellmoo

Posts: 2531; Member since: Oct 31, 2011

In Canada, the G5 goes for $750, while the S7 goes for $900, so there can be quite a difference. That being said, I did choose an S7 edge over the G5 simply because I saw too many reports of quality control issues with the G5.

9. tyrionTheWise unregistered

Well, there can be difference in the other direction too. It just depends on which country you're in.

3. Mxyzptlk unregistered

The G5 is a fugly phone and is a dissapointment. I don't see how LG is posting a profit.

5. tedkord

Posts: 17131; Member since: Jun 17, 2009

The iPhone 6 and 6s are fugly phones, but Apple posts profits.

6. poptart

Posts: 49; Member since: Nov 28, 2014

I think iPhones are good looking devices. I just tend to buy things that no one else has so I've never owned any type of iPhone.

11. tyrionTheWise unregistered

Normal iPhones look pretty good, plus versions do not. Too much bezel.

13. Mxyzptlk unregistered

Tedkord talking out of his rear again.

17. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

What makes you think that you dont?

19. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Which is what you do all day long.

18. BobbyDigital

Posts: 2124; Member since: May 29, 2014

The iPhone's are not only fugly, but they have dated specs. And yet they turn a profit so what's your point? Unless your point is to troll which is what you always do.

4. poptart

Posts: 49; Member since: Nov 28, 2014

Interested in the LG g5. Maybe even the Nexus 6P or Nextbit Robin. Really waiting for the Vivo XPlay 5 elite to release before making my next purchase.

8. Hallyu

Posts: 790; Member since: Jul 21, 2015

I'm glad that LG is on its way back to its momentum, and of course, it should be. #LifeIsGood

10. avishekmukherjee

Posts: 362; Member since: Apr 09, 2015

LG :)

12. manojmcn

Posts: 633; Member since: Jul 16, 2015

All the profits of LG comes from the other departments like Display, TV , A/C etc. The Mobile division has been laying EGGS for some time, at least for last one year Mobile revenue is in the negative. By playing too much with G5, and screwing its chances the losses will be huge in the coming quarters.

14. Romantico3pe

Posts: 177; Member since: Sep 14, 2015

I bought lg g5 over the s7 cause i cant stand amoled screens, after my s4 and s6 burning in by google maps i decided never to buy phones with crapoled screens

22. DRS1977

Posts: 678; Member since: May 27, 2015

Better get used to it pal, because all phones one day will have AMOLED screens. I've owned every single "S" Galaxy and never had burn in problems.

15. PHYCLOPSH

Posts: 640; Member since: Jun 28, 2014

If this quarter is so profitable, I hope they save those profits as it could be quite awhile until they see more of them. The G5 will not be making them any richer as I see it, and I am very much an LG fan.

16. jroc74

Posts: 6023; Member since: Dec 30, 2010

I thought No One Makes Money With Android Sorry couldn't resist.

20. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Congrats LG!

21. Anonn

Posts: 230; Member since: Jun 04, 2014

HA HA HA LG’s mobile is getting its THIRD CONSECUTIVE LOSING QUARTER !!! http://phandroid.com/2016/04/11/lg-q1-2016-numbers/ Losers

23. jonathonpower7

Posts: 49; Member since: Mar 09, 2016

LG's mobile division help to strengthen the brand. Profits from cell phones would be icing on the cake some day.

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