Samsung Electronics forecasts Q3 rebound

Samsung Electronics predicted Wednesday that its operating profits in the July-September period would recover to exceed 2 trillion won ($1.5 billion) after months of efforts to elevate profitability amid memory chip slump.
Samsung's third-quarter operating profits is estimated to hit 2.4 trillion won, a 77.9 percent plunge from a year ago, according to the company’s earnings guidance. The figure exceeded the 2.2 trillion won consensus by local analysts provided by market intelligence firm FnGuide.
It will likely mark the first time this year that the company sees at least a trillion won in quarterly profits. The firm's earnings struggled in the first and second quarters, logging 640 billion won and 670 billion won, respectively.
Third-quarter sales are estimated to decline 12.7 percent on-year to 67 trillion won. Yet the July-September figure soared 11.7 percent from the previous quarter’s 60.1 trillion won. The sales estimate was, however, lower than the consensus of 67.7 trillion won projected by FnGuide.

While Samsung did not release detailed performances of its key business units for Wednesday’s earnings guidance, market watchers expect its Device Solutions division, which oversees the chip business, will record a deficit of around 3 trillion won.
The size of the chip deficit will have decreased, from some 4 trillion won marked in the first and second quarters, according to their predictions. When the tech giant announced its earnings guidance for the January-March period in April, it officially announced that chip production had been cut to a “meaningful level” for the first time.
The narrowing deficit appears to be attributed to the meaningful profits earned from Samsung’s mobile and display units, thanks to the strong sales of the latest Galaxy Z Flip5 and Fold5 smartphones unveiled this July.
Korea Investment & Securities analyst Chae Min-sook said, “The main purpose of (Samsung’s) production cuts that have continued since the first half of the year is to reduce its inventory."
"The supply control effect resulting from the chip production cuts has already begun to appear, and the average selling price of DRAM will have turned upward starting from the third quarter," the analyst added.
The country’s bellwether stock jumped about 4 percent in early trading Wednesday as investors were boosted by the market’s rosy outlook and the company’s better-than-expected third-quarter results. Samsung's shared gained 2.71 percent to close at 68,200 won on the same day.
The world's largest memory chip and smartphone maker will release a detailed third-quarter earnings report on Oct. 31.
相关文章
北, 日의 장거리미사일 조기 배치 추진에 “전쟁국가 일본 실체”
일본 정부가 구매 의사를 밝힌 미국산 토마호크 미사일. AFP=연합뉴스북한은 일본이 장거리미사일 조기 배치를 비롯해 미사일 방어 및 반격 능력을 강화하겠다는 계획을 밝힌 것에 대해2023-12-10P&G Korea launches premium diaper to combat skin dryness
P&G Korea, the South Korean unit of the global consumer goods maker Proctor & Gamble, said Thursday2023-12-10민주당 개표 초반부터 환호성…김태우 캠프엔 적막 가득했다
김태우 국민의힘 강서구청장 후보(가운데)가 11일 이철규 사무총장과 대화하고 있다. 김종호 기자서울 강서구청장 보궐선거 개표가 한창이던 11일 밤, 김태우 국민의힘 후보 선거사무실2023-12-10HD Hyundai Shipbuilding invests $47m in Estonian fuel cell for green maritime energy
South Korean shipbuilder HD Korea Shipbuilding & Offshore Engineering, a subsidiary of HD Hyundai, a2023-12-10김성원 여의도연구원장 "공천장사 지라시, 허위사실 유포로 고소"
김성원 국민의힘 의원이 지난 6월 19일 오전 서울 여의도 국회 의원회관에서 열린 제3회 UCAI 포럼 세미나 : 금융 범죄 예방과 경쟁력 강화를 위한 한·미 AI 협력 세미나에서2023-12-10The 2023 Seoul Fantastic Beer Festival
The 2023 Seoul Fantastic Beer Festival, which launched Friday, runs until Oct. 15 at Seoul Noryangji2023-12-10
最新评论