PK - Posco surges to nearly 16-year high as earnings turnaround continues

2023-07-24 08:58:42 ET

Posco Holdings ( NYSE: PKX ) is poised to open Monday at its highest since 2007 , +17.7% pre-market, after Q2 results indicated it continued to recover after a profit turnaround in the previous quarter.

The Korean steelmaker reported Q2 operating income of 1.32T won (~$1B), down from the year-earlier quarter but nearly double the 705B won in Q1 and beating analyst expectations for 1.12T won.

Q2 net profit fell to 776B won from 1.8T won and Q2 revenues slid 13% to 20.12B won in the same quarter a year ago, when strong post-COVID steel demand and prices had sent earnings temporarily higher.

Posco ( PKX ) shares have surged 40% in the past month with a big jump in short selling volume and turnover, so " short covering is partly driving the rally ," according to Billionfold Asset Management's An Hyungjin.

Posco's ( PKX ) improved prospects follow a $92B investment plan announced earlier this month to expand its business beyond steel operations into production of electric vehicle battery materials and hydrogen.

More on Posco Holdings:

• Financial and valuation comparison to sector peers
• Analysis: Watch Shareholder Capital Return And Investor Relations Plans
• Stock price return: Up 97.5% YTD, up 132% in the past 12 months

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