Earnings Per Share (EPS) beat: KT Corporation reported an EPS of -0.89, surpassing the estimated -1.01.
Revenue slightly below estimates: The company generated revenue of approximately $4.54 billion, missing the forecasted $4.66 billion.
KT Corporation (NYSE:KT) is a leading telecommunications company in South Korea, offering a broad spectrum of services such as mobile, broadband, and media services. It competes with other telecom giants like SK Telecom and LG Uplus within the South Korean market. On February 20, 2025, KT reported an EPS of -0.89, which was better than the anticipated EPS of -1.01. The company’s revenue was approximately $4.54 billion, slightly below the expected $4.66 billion.
During KT’s Q4 2024 earnings call, executives Young-Kyun Yoon and Jang Min shared insights into the company’s financial performance. Despite the revenue shortfall, KT’s EPS beat is indicative of effective cost management or other operational efficiencies. The call attracted analysts from firms such as DB Financial and KB Securities, underscoring the keen interest in KT’s financial health.
KT’s financial metrics offer a nuanced view of its performance. The company’s P/E ratio of 5.64 suggests a low valuation relative to its earnings, potentially appealing to value investors. The price-to-sales ratio of 0.46 indicates modest market valuation of its sales, which could concern some investors.
The enterprise value to sales ratio of 0.68 shows that KT’s enterprise value slightly exceeds its sales, while the enterprise value to operating cash flow ratio of 3.32 demonstrates its efficiency in generating cash flow relative to its enterprise value. These figures suggest that KT is managing its resources effectively, despite the revenue miss.
KT’s earnings yield of 17.73% highlights the potential return on investment for shareholders, indicating a potentially high return. The debt-to-equity ratio of 0.56 reveals a moderate level of debt relative to equity, suggesting a balanced financing approach. Additionally, a current ratio of 1.04 indicates that KT has slightly more current assets than current liabilities, reflecting short-term financial stability.
