Posco (NYSE:PKX) stock is on the rise Monday following the release of the metal manufacturing company’s earnings report for the second quarter of 2023.
That’s despite the company reporting a net profit of 776 billion South Korean won during the quarter. That’s below the 896 billion South Korean won in net profit that analysts were expecting. It’s also a 57% drop year-over-year (YOY).
To go along with that, Posco reported a revenue of 20.1 trillion South Korean won in Q2. Yet again, that failed to reach Wall Street’s estimate of 20.32 trillion South Korean won for the quarter. That represents a 12.6% decline from the 23 trillion South Korean won reported in the same period of the year prior.
What’s Behind the PKX Stock Rally
Even without a positive earnings report, investors are hopeful for the future of PKX stock. The company recently returned to profitability and continued that trend this quarter. There’s also hope that the steel market will hit its low later this year, meaning recovery is likely to follow.
In addition to that, Posco is continuing its push into electric vehicle (EV) battery production. This has it expecting to manufacture 423,000 tons of lithium per year by 2030. That’s a 41% increase from its prior lithium production target, MarketWatch notes.
PKX stock is up 18.1% as of Monday morning and is up 97.8% since the start of the year as of Friday’s close.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
