[Alpha Biz=(Chicago) Reporter Paul Lee] CJ CheilJedang and Daesang's fourth-quarter earnings are expected to fall short of market expectations. This is because the cost burden has intensified and the price of lysine (essential amino acids used for feed) sold by both companies is also falling.
According to consensus data compiled by financial information analysis firm FnGuide on the 2nd, CJ CheilJedang's sales are expected to reach 7.6984 trillion won in the fourth quarter of last year, up 10.8% from the same period last year and 35.1% to 319.7 billion won, respectively.
However, by individual securities firms, more and more companies are lowering their expected performance, saying CJ CheilJedang's performance will fall short of the consensus. DS Investment & Securities lowered its sales estimate for the fourth quarter from 7.7876 trillion won to 7.6127 trillion won and its operating profit estimate from 360 billion won to 302.7 billion won. NH Investment & Securities also lowered its sales forecast for the fourth quarter from 7.8 trillion won to 7.726 trillion won and its operating profit forecast from 335 billion won to 307.1 billion won.
The target is also expected to perform lower than market expectations. The fourth-quarter consensus predicted that sales rose 13.8 percent year-on-year to 1.295 trillion won and operating profit rose 9.8 percent to 19.1 billion won, with sales of 1.323 trillion won and operating profit of 18.2 billion won. eBEST Investment & Securities is also estimated at 1.53 trillion won and 17 billion won, lower than the consensus.
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