PKX - Why Posco Stock Surged 17% Today
2023-07-24 12:30:29 ET
Shares of Korean steel company Posco Holdings (NYSE: PKX) leaped 17.2% on Monday morning (through 11:35 a.m. ET) despite Posco reporting steep declines in revenue, operating, and net earnings for its fiscal third quarter 2023.
Sales for the quarter were 20.1 trillion Korean won (KWN) or $15.7 billion, down 12.6% year over year. Operating profits plunged 38.1% to 1.3 trillion KWN, or $1 billion. Net income fell 55.6% to 800 billion KWN -- $625 million.
Market watchers, however, were exuberant over the results, with Bloomberg calling Posco's quarterly profits "strong" -- and a surprise to short-sellers , who had expected worse numbers from the steelmaker . Korean investment firm Billionfold Asset Management agreed, with CEO An Hyungjin averring that "short covering is partly driving the rally."
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Why Posco Stock Surged 17% Today