"HD Hyundai Mipo, L&F, and Others Expected to Deliver Earnings Surprises in Q2"

HD Hyundai Mipo, L&F, and Hyundai Department Store have been selected as stocks expected to deliver earnings surprises in the second quarter of this year.

On June 26, Seol Taehyun, a researcher at DB Securities, stated in the report "Finding Earnings Surprise Stocks (25Q2)" that "the combined second-quarter operating profit of domestic companies with estimates from at least three institutions is 64.8 trillion won."

Researcher Seol explained, "This figure is similar to the 64.9 trillion won forecasted at the beginning of April, which was the start of the quarter," and added, "Considering that second-quarter operating profit forecasts are generally revised upward compared to the beginning of the quarter, expectations for earnings improvement this year are low." Previously, in the first quarter, out of the 30 stocks expected to deliver earnings surprises, only 18 actually exceeded expectations, with their average return being 48.3%.

Among the 176 companies with earnings estimates from at least three institutions, Seol predicted that 113 companies would meet or exceed market consensus in the second quarter.

He diagnosed that "companies with a low expected earnings surprise ratio include S-Oil, LG Energy Solution, Emart, and CJ ENM, while those with a high ratio include HD Hyundai Mipo, L&F, Hyundai Department Store, and Yuhan Corporation." The expected earnings per share (EPS) surprise ratio for HD Hyundai Mipo was estimated at 7.1%. For L&F, Hyundai Department Store, and Yuhan Corporation, the ratios were 6.8%, 6.4%, and 6.2%, respectively.

Researcher Seol also noted, "Industries with many companies expected to report results exceeding market expectations include software, capital goods, pharmaceuticals and bio, and media. Sectors with a high proportion of companies anticipated to record earnings surprises are life insurance, insurance, and securities. By contrast, the proportion of companies expected to post weak results is relatively high in automobiles and parts, food, beverages and tobacco, and capital goods."