Samsung Electronics’ operating profit expected to plummet in the fourth quarter
Samsung Electronics 005930,
Samsung Electronics predicted that its operating profit in the fourth quarter would decline by 35% compared to the same period last year, falling below market expectations and also dampening expectations for a recovery in performance led by the semiconductor business.
Samsung Electronics, the world’s largest maker of memory chips, smartphones and TVs, said in its preliminary earnings forecast Tuesday that it expects operating profit for the October-December quarter to reach 2.8 trillion won ($2.13 billion), reaching 4.31 trillion won in the same period. revealed. A year ago.
The company’s operating profit estimate for the December quarter was below the consensus of 3.797 trillion won compiled by FactSet.
The weaker-than-expected quarterly performance would defy most market analysts’ expectations that Samsung’s flagship memory chip business could continue to improve and lead an overall recovery, driven by rising DRAM prices and robust demand for its powerful artificial intelligence computing chips. .
The company is expected to release its full quarterly results later this month.
Sales this quarter are expected to reach 67 trillion won, down 4.9%.
In 2023, operating profit is expected to decrease by 85% to 6.54 trillion won, and sales are expected to decrease by 15% to 258.16 trillion won.
