SK Hynix misses revenue and profit estimates despite record margins

SK Hynix fell short of analyst estimates on both revenue and operating profit in the second quarter, even as AI-driven memory demand pushed operating margin to a record 76% and profit up more than fivefold from a year earlier.

Revenue came in at $54.6 billion, below the $57.7 billion estimate, though it still rose 257% year-over-year and 51% quarter-over-quarter. Operating profit was $41.6 billion, up 557% from a year earlier but under the $44.2 billion estimate. Net profit was $64.6 billion, up 1,243% from a year earlier, exceeding revenue on $42.8 billion in non-operating profit that included $43.5 billion of investment-asset gains.

DRAM average selling prices rose about 30% quarter-over-quarter, with bit growth in the high-single-digit percentage range. NAND ASPs climbed in the mid-50% range, with bit growth in the mid-teens. Gross margin was 83%, up 2,900 basis points year-over-year. EBITDA rose 411% to $44.4 billion, an 81% margin. Cash climbed to $60.5 billion from $11.7 billion a year earlier, while net debt-to-equity improved to negative 26% from positive 6%.

For the third quarter, SK Hynix guided to DRAM bit growth of about 10% quarter-over-quarter, with NAND bit growth, including Solidigm, in the low-single-digit range. HBM4 shipments began in the quarter, with a full ramp planned for the second half. HBM4E samples based on 1cnm technology were supplied to a major customer in the first half, and SOCAMM2 supply on 1cnm has fully commenced. The company's 321-layer NAND now accounts for its largest share of NAND production, with a target of 50% of domestic capacity by year-end.

SK Hynix said it has signed about 10 long-term agreements with key customers featuring deposit mechanisms and ...