KD Navien's shares plunged after the company reported fourth-quarter (October to December) results that fell short of market expectations, despite previously setting a record high.
KD Navien's shares closed at 90,500 won on the KOSPI market on the 24th, down 10.48% (10,600 won) from the previous day. During the day, KD Navien's shares rose to 107,000 won, coming close to the record high of 107,700 won set on the 21st. However, around 3:15 p.m., as it disclosed its results before the market closed, the shares plummeted to 86,500 won.
The impact of the 'earnings shock (results below market expectations)' was significant. KD Navien announced that it recorded consolidated revenue of 400.3 billion won and operating profit of 33.8 billion won for the fourth quarter. This fell short of the market forecast of 444 billion won in revenue and 39.8 billion won in operating profit. Disappointment in results was likely heightened given that the fourth quarter is typically considered a peak season.
Going forward, it is expected that KD Navien's ability to achieve results in the North American core heating equipment market, including its condensing water heater and heat pump and condensing hydro furnace, will determine the trend of its stock price. According to financial information firm FnGuide, securities firms forecast an increase in KD Navien's revenue and operating profit in the second half of this year.