US Markets
Home›US Markets›Equities›SK Hynix shares fall after 557% operating profit jump
SK Hynix shares fall after 557% operating profit jump
Despite revenue rising to about $55 billion and net profit increasing about 1,242%, SK Hynix missed an estimated $44 billion operating profit level, triggering a sell-off.
SK Hynix reported a 557% increase in operating profit for its most recent quarter, but the upbeat results coincided with a sharp stock sell-off, with South Korea markets turning lower. Yahoo Finance said the company’s results dragged the Kospi down, reflecting investors’ fast-shifting expectations in the chip sector.
According to Yahoo Finance, SK Hynix revenue rose to about $55 billion, up 257% year over year. Net profits also jumped about 1,242%, yet shares still fell about 10% on Wednesday and were down nearly 50% over the prior month.
The outlet said the market reaction reflected a miss versus analyst expectations, with investors apparently seeking even higher performance than what was delivered. Analysts were penciled in for about $44 billion in operating profit, while SK Hynix reported $41.6 billion.
Yahoo Finance added that SK Hynix’s U.S.-listed ADRs, which started trading on Nasdaq on July 10, were down about 22%. It also noted the Kospi was already under pressure from concerns about Chinese chip competition before the results arrived, and the index was down about 6% on Wednesday and down about 33% over the last month.
Latest closeNasdaq Comp. 26,749.30 ▼0.7%|Kospi 7,080.92 ▲1.0%