Benzinga | Jul 28, 2021 09:04AM EDT

LG Display Stock Gains On Strong Q2 Helped By High LCD Panel Prices

* LG Display Co Ltd (NYSE:LPL) reported second-quarter FY21 revenue growth of 31% year-on-year to KRW 6.97 trillion. The revenue of $6.2 billion missed the analyst consensus of $6.33 billion.

* High sales in TV displays, including OLED, solid performance in IT products, and increased LCD panel prices drove the numbers.

* LG Display's OLED TV panel shipments in the first half of this year surpassed 3.5 million units, putting the company on track to sell 8 million OLED panels within the year.

* The operating margin reached a double-digit percentage of 10% for the first time in 16 quarters.

* The EBITDA margin of 25.4% was the highest margin since Q3 of 2009.

* The EPS of $0.53 beat the analyst consensus of $0.44.

* It held KRW 4.2 trillion in cash and equivalents at the end of the quarter.

* The company generated KRW 1.5 trillion in operating cash flow.

* Outlook: LG Display will continue to seek to increase profit by continuing to strengthen its position within the super large-size TV market and expand its position within the mid-size premium market in the second half of this year.

* It aims to turn its large-size OLED business in the black in the H2 while pursuing an operating margin in a mid-single-digit range from 2022, and eventually, a double-digit range in the mid to long run.

* Price action: LPL shares are trading higher by 2.63% in premarket at $9.77 on the last check Wednesday.