SpaceX third-quarter results beat forecasts; South Korean related stocks rise

Shares of South Korean companies seen as linked to SpaceX rose on 21 October after SpaceX reported third-quarter results above market forecasts. Newsis reported that at 10:17, according to Korea Exchange data, Seupieo (스피어), which supplies special alloys to SpaceX, was up 6.24%. Kencoa Aerospace (켄코아에어로스페이스) was up 3.81% and Mirae Asset Securities up 3.61%. YJ Link (와이제이링크), Mirae Asset Venture Investment (미래에셋벤처투자) and HVM (에이치브이엠) each rose by about 2%. [ 1 ]

Seoul Economic Daily gave closing figures. Mirae Asset Securities rose 1,000 won, or 4.02%, to 25,900 won. On the KOSDAQ market, Seupieo closed up 3.23% at 22,350 won and HVM up 2.81% at 65,900 won. Both had risen about 9% early in the session before giving back part of the gain. The paper said the rise was read as a response to the results, which were announced before the Korean market opened. Newsis said they came after the New York market closed. [ 1 , 3 ]

Newsis said SpaceX's third-quarter revenue was $14.58 billion against an expected $12.9 billion, and earnings per share were $0.35 against an expected $0.15. AI-related revenue was $7.56 billion against an expected $6.3 billion. Rocket launches numbered 35, below the expected 41. Seoul Economic Daily said revenue was up 161% from a year earlier and operating profit was $2.791 billion, a swing to profit from both the prior year and the prior quarter. It said Starlink revenue was $5.25 billion, up 70%, and that SpaceX shares rose by almost 10% at one point in after-hours trading. [ 1 , 3 ]

The two papers differ on the space segment. Newsis said the market expected a loss of $300 million but the segment made a $7 million profit. Seoul Economic Daily said the segment had an operating loss of $7 million, far smaller than the expected $430 million loss. [ 1 , 3 ]

Newsis reported that on the earnings conference call Musk said SpaceX and Tesla had each formed a special committee to discuss a possible merger. Musk said there were considerable advantages to combining the companies as they had effectively entered a superintelligence singularity, adding that he thought it a good idea but shareholders would have to back it. [ 1 ]

Seoul Economic Daily said Mirae Group invested about $278 million in SpaceX in 2022 and 2023, before its listing, and that Mirae Asset Securities has been seen as a beneficiary of a rise in SpaceX's value. Securities analysts expect it to post a loss for the third quarter because of valuation losses and a return to profit in the fourth quarter, the paper said. A Hana Securities researcher, Kim Jae-im, called the increase in tradable shares after the year-end lock-up release a short-term risk. He expects 2027 computing revenue growth, Starship progress and the V3 satellite network expansion to lift the share price. [ 3 ]

Korea Economic Daily, whose text was available only as a summary, said Korean space-related stocks rose with SpaceX's results. It said that because performance differs widely between companies, investors should choose selectively based on actual orders and earnings. [ 2 ]