SK Hynix posted second-quarter revenue of 79.32 trillion won and operating profit of 60.54 trillion won, both short of LSEG SmartEstimates. Revenue still jumped 257% from a year earlier, and cumulative first-half revenue passed 100 trillion won for the first time in company history. The stock closed 9.6% lower on Wednesday.
SK Hynix shares closed 9.6% lower on Wednesday after falling as much as 15% earlier in the session, as second-quarter earnings and revenue growth failed to satisfy analysts' expectations. The memory maker's U.S.-listed shares were last trading down 3.4%.
Revenue and profit land below estimates
Revenue reached 79.32 trillion won ($54.55 billion) against the 84 trillion won expected, measured against LSEG SmartEstimates, which weight forecasts from analysts who are more consistently accurate. Operating profit came in at 60.54 trillion won versus 64 trillion won expected.
Against the prior year, revenue jumped 257% in the quarter ended June. Operating profit soared nearly 557% year on year.
Compared with the previous quarter, revenue increased 51%. Operating profit gained 61% sequentially. Cumulative revenue for the first half exceeded 100 trillion won for the first time in company history.
Memory prices set a fresh record
The company said it saw sustained demand growth from expanding AI infrastructure investments, while high-performance products for AI servers led price increases that set a fresh record. Both DRAM and NAND flash memory prices rose quarter over quarter as SK Hynix expanded sales of high-value-added products including HBM, DRAM for AI servers and enterprise SSDs.
Josh Gilbert, lead analyst for APAC at eToro, said the company's 83% gross margin indicates pricing power is still alive and well, describing a market where "customers are fighting over supply".
Capex and HBM4 shipments ahead
SK Hynix expects capital expenditures this year to reach the high 40 trillion won range. It plans to build on the ADR it listed on Nasdaq earlier this month. The company emphasized that it will prioritize investments in growth and work to secure a sound financial structure.
Mass shipments of HBM4 began in the second quarter. SK Hynix also completed sample shipments of HBM4E during the first half. Nvidia counts among the company's key clients, a partnership that recently expanded through a multiyear deal worth over $500 billion.
Source: CNBC
Trading involves risk.
Risk Disclaimer
