By Kwanwoo Jun

Posco Holdings is scheduled to report its fourth-quarter results on Monday. Here's what you need to know:

NET PROFIT FORECAST: The South Korean steelmaker is forecast to post a net profit of 268.06 billion won, or $185.4 million, for the October-December quarter, a turnaround after a loss for the same period a year earlier but down 41% from the previous quarter, according to a FactSet-compiled consensus forecast.

REVENUE FORECAST: The consensus forecast is for revenue to have fallen 3.2% on year to 18.074 trillion won for the December quarter, with operating profit likely to have doubled to 633.25 billion won.

The stock lost 34% for the quarter and 49% for the full year. It was recently 0.8% lower Friday.

WHAT TO WATCH:

--MARGINS: Investors are looking to see if Posco continued to struggle with weak profit margins despite a possible sales recovery. Daishin Securities analyst Lee Tae-hwan said in a recent note that Posco's profit margins may have weakened due to lower steel-product prices.

--OVERSUPPLY: China's increased output and oversupply of steel products will likely continue to weigh on Posco and other South Korean steelmakers still struggling with muted demand and sluggish construction markets at home, with no quick solution likely to come in the near term, according to Korea Investment & Securities analyst M.S. Choi.

--BATTERY: Posco's struggling battery affiliate, Posco Future M, will also be of interest, as it is set to release its quarterly results ahead of its parent's on the same day.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

January 30, 2025 23:55 ET (04:55 GMT)

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