Daily Management Review

Samsung expects drop in profits by 29% in the IV quarter


01/09/2019


South Korean Samsung Electronics Co., the world's largest manufacturer of smartphones and semiconductors, predicts a drop in operating profit in the fourth quarter by 28.7%, to approximately 10.8 trillion won ($ 9.67 billion) compared to 15.15 trillion won for the same period a year earlier.



Jami3.org
Jami3.org
Analysts on average estimated the company's profit at 13.2 trillion won, according to CNBC. Thus, the forecast of Samsung itself is more than 18% worse than experts' expectations.

In addition, the results will be lower than in the two previous quarters: in April-June, the company's operating profit amounted to 14.87 trillion won, in July-September – to 17.57 trillion won.

Samsung estimates revenue in the fourth quarter in the region of 59 trillion won, which is 10.6% lower than the figure for the same period in 2017.

Analysts polled by S&P Global Market Intelligence, on average, suggest that Samsung will receive an operating profit of 13.8 trillion won in the last quarter with revenue of 63.5 trillion won.

The estimated deterioration in financial performance is taking place “amid growing macroeconomic uncertainty,” Samsung said. The company also notes "weak demand" for memory chips and "increased competition" in the field of mobile phones.

Samsung will publish final quarterly reports later this month.

Samsung stock price on the basis of trading in Seoul on Tuesday fell by 1.7%. Over the past 12 months, the company's capitalization has decreased by more than 25%.

source: cnbc.com






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