Samsung Electronics Forecasts Weaker Fourth-Quarter Operating Profit
By Kwanwoo Jun
Samsung Electronics expects its fourth-quarter operating profit to fall 35% from a year earlier, missing market expectations and dampening hopes for an earnings recovery led by its semiconductor business.
The world's largest maker of memory chips, smartphones and televisions said in a preliminary earnings forecast Tuesday that its operating profit is expected at 2.800 trillion won ($2.13 billion) for the October-December quarter, compared with KRW4.310 trillion for the same period a year earlier.
The company's operating-profit estimate missed the FactSet-compiled consensus forecast of KRW3.797 trillion for the December quarter.
Weaker-than-expected quarterly earnings results would run against expectations from most market analysts that Samsung's flagship memory-chip business could continue to improve and drive its overall recovery on higher DRAM prices and solid demand for powerful artificial-intelligence computing chips.
The company is set to release its full quarterly results later this month.
Revenue is expected to fall 4.9% to KRW67.000 trillion for the quarter, the South Korean tech giant said.
For 2023, operating profit is expected to plunge 85% to KRW6.540 trillion, while revenue is forecast to fall 15% to KRW258.160 trillion.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
January 08, 2024 19:20 ET (00:20 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: AI Leaders Excel in Earnings Season
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth