They Said Earnings Were Strong—So Why Aren’t My Stocks? ... The Picture Was Different Without Samsung Electronics and SK hynix

[Financial News] The combined third-quarter operating profits of domestic listed companies came in above market expectations. However, more companies fell short of expectations than beat them. When Samsung Electronics and SK hynix were excluded from the total, operating profits were also found to be below market expectations.
According to the financial investment industry on the 13th, the combined third-quarter operating profits of domestic companies with brokerage estimates exceeded market expectations by 3.9%. The combined operating profits of companies excluding Samsung Electronics and SK hynix fell 1.1% short of estimates. When Hyundai Motor and SK Innovation were also excluded, the figure was 3.2% below expectations.
By number of companies, 51.5% fell short of market expectations for operating profit, while 48.5% exceeded them. With some companies that generate large profits lifting the overall results, the earnings season may have felt different depending on the stocks investors held. Analysts had been concerned that export-oriented companies’ earnings could suffer as exchange rates fell, but some say large-cap stocks held up well, reducing the impact on the stock market.
Byun Jun-ho, a researcher at IBK Securities, said, “As results from large companies such as Samsung Electronics, SK hynix and Hyundai Motor came in better than the market had feared, the market impact of the earnings announcements is estimated to have been less severe than feared.”
An indicator that eased concerns about fourth-quarter earnings also emerged. Exports in early November were found to have increased 112% from the same period a year earlier.
Analysts had expected export growth to slow from the fall compared with the same period last year, but some say strong semiconductor exports are supporting the upward trend.
Byun said, “Although export value in October fell somewhat from September, export conditions are judged to remain solid,” and forecast, “This is expected to ease concerns about fourth-quarter economic conditions and earnings.”
In the United States, AI cloud provider CoreWeave’s third-quarter revenue and earnings per share exceeded market expectations by 3% and 18%, respectively. Before its earnings announcement, concerns mounted as its share price plunged and corporate bond yields climbed. However, CoreWeave reported results that beat market expectations and raised its outlook for the future.
Byun said, “Given that earnings stability has been confirmed in the short term and guidance has also been raised, we believe the period of heightened short-term risk will ease.”
NVIDIA is scheduled to report earnings next week. Investors in domestic semiconductor stocks are focused on the revenue forecast for the coming quarter that NVIDIA will provide. The outlook for NVIDIA’s AI accelerator sales can offer a sense of demand for the high-bandwidth memory (HBM) supplied by Samsung Electronics and SK hynix.
Interest rates remain a variable. Markets are watching the possibility that the United States, Europe and Japan will all raise their benchmark rates in December. Analysts say that because the possibility of rate hikes has already been substantially priced into financial markets, actual increases could limit gains in the stock market.
[email protected] Bae Han-geul Reporter