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LGD Analysts Positive on Q3’20 Financial Performance
 
LG Display’s  financial performance over the last year has suffered as it transitions away from LCD production. In Q220, LCD had revenues of $4.3b and operating income of  -$426m. LGD expects the turnaround to begin in Q320 as the Guangzhou ramp up started in July 2020, and their small/medium OLED panel shipments  for the Apple iPhone 12 will increase to 20m panels, up from 5m last year causing a positive impact on utilization. 
 
Figure 1: LGD OLED TV Panel Production Trends & Forecasts

​Analysts have become more positive on LGD with consensus revenue (Dongbu, Eugene, Hana, Samsung Securities) of $5.7b up 20% Y/Y and 56% sequentially. Samsung Securities and Hana Securities also indicated improved revenues and operating incomes for Q3’20. According to Hana, 34% of total revenues will be generated by the OLED business in Q3’20, estimated for $1.86 Billion from Hana’s projected Q3’20 revenue of $5.5 Billion. 
 
Table 1: LGD Q220 Financial Results vs. Analyst’s Projections for Q320 

Samsung Securities and Hana Securities also indicated improved revenues and operating incomes for Q3’20. According to Hana, 34% of total revenues will be generated by the OLED business in Q3’20, estimated for $1.86 Billion from Hana’s projected Q3’20 revenue of $5.5 Billion.   
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Table 2: LGD’s OLED Revenue Share Trends & Forecasts