Shares of Korean steel company Posco Holdings (NYSE: PKX) leaped 17.2% on Monday morning (through 11:35 a.m. ET) despite Posco reporting steep declines in revenue, operating, and net earnings for its fiscal third quarter 2023.

Sales for the quarter were 20.1 trillion Korean won (KWN) or $15.7 billion, down 12.6% year over year. Operating profits plunged 38.1% to 1.3 trillion KWN, or $1 billion. Net income fell 55.6% to 800 billion KWN -- $625 million.  

Market watchers, however, were exuberant over the results, with Bloomberg calling Posco's quarterly profits "strong" -- and a surprise to short-sellers, who had expected worse numbers from the steelmaker. Korean investment firm Billionfold Asset Management agreed, with CEO An Hyungjin averring that "short covering is partly driving the rally."  

Continue reading

Source Fool.com