SK Hynix shares fall sharply in Seoul after the company reports stronger earnings but results that miss market expectations and indicate higher future spending. Multiple outlets report the stock drops around 19% on the day, wiping out earlier gains.
Quartz and Bloomberg say SK Hynix’s second-quarter operating profit rises dramatically year over year, with Quartz citing a 557% increase to 60.54 trillion won. However, the figure comes in below consensus expectations, with Quartz noting a forecast of about 64 trillion won. Bloomberg also reports that the company announces plans for increased spending, with at least $31 billion earmarked for capital expenditures in 2024.
Other sources echo that despite a record-level profit, investors react negatively due to the shortfall versus estimates and concerns about the scale of spending. Overall, outlets are consistent that the earnings report delivers a large year-over-year profit surge, but the combination of missing forecasts and higher capex drives the steep decline in the share price.
