Samsung E&A shares surged more than 15% in early trading, buoyed by better-than-expected third-quarter results and a significant shareholder return policy announcement.
As of 10:23 a.m. on October 22, Samsung E&A shares were trading at 55,000 won, up 7,300 won (15.30%) from the previous session, according to the Korea Exchange.
The stock's rise is attributed to the company's strong performance and the announcement of its shareholder return strategy. Samsung E&A reported a consolidated revenue of 2.91 trillion won and an operating profit of 500.6 billion won for the third quarter, marking increases of 45.8% and 183.6%, respectively, compared to the same period last year.
Notably, the operating profit exceeded market expectations, nearly doubling the consensus estimate of 252 billion won, resulting in what analysts are calling an 'earnings surprise.'
New orders also showed robust growth, with third-quarter new orders and cumulative orders reaching 9.4 trillion won and 17.1 trillion won, respectively. Consequently, Samsung E&A raised its operating profit forecast for the year from 800 billion won to 1.4 trillion won, and adjusted its order forecast from 12 trillion won to 19 trillion won.
Additionally, Samsung E&A announced plans to enhance shareholder value and provide stock compensation to employees by acquiring approximately 780 billion won worth of its own shares over the next three months, starting October 23.
Of this amount, about 690 billion won will be retired to boost shareholder value, while the remaining 90 billion won will be used for employee bonuses and other purposes.
As of 10:23 a.m. on October 22, Samsung E&A shares were trading at 55,000 won, up 7,300 won (15.30%) from the previous session, according to the Korea Exchange.
The stock's rise is attributed to the company's strong performance and the announcement of its shareholder return strategy. Samsung E&A reported a consolidated revenue of 2.91 trillion won and an operating profit of 500.6 billion won for the third quarter, marking increases of 45.8% and 183.6%, respectively, compared to the same period last year.
Notably, the operating profit exceeded market expectations, nearly doubling the consensus estimate of 252 billion won, resulting in what analysts are calling an 'earnings surprise.'
New orders also showed robust growth, with third-quarter new orders and cumulative orders reaching 9.4 trillion won and 17.1 trillion won, respectively. Consequently, Samsung E&A raised its operating profit forecast for the year from 800 billion won to 1.4 trillion won, and adjusted its order forecast from 12 trillion won to 19 trillion won.
Additionally, Samsung E&A announced plans to enhance shareholder value and provide stock compensation to employees by acquiring approximately 780 billion won worth of its own shares over the next three months, starting October 23.
Of this amount, about 690 billion won will be retired to boost shareholder value, while the remaining 90 billion won will be used for employee bonuses and other purposes.
* This article has been translated by AI.
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