Samsung Electronics forecasts Q3 rebound
简介Samsung Electronics predicted Wednesday that its operating profits in the July-September period woul ...
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.
South Korea's domestic consumption is expected to slow down further after local service sector ...
SHINee’s Taemin is returning with a new solo EP titled “Guilty” on Oct. 30, according to SM Entertai ...
For one local beer aficionado, the recent increase in the variety of alcoholic beverages available a ...
[Herald Interview] Samyang CEO envisions elevating K
[Photo News] AI, conventional painting come together
Disney+’s ‘Moving’ sweeps BIFF’s Asia Contents Awards & Global OTT Awards
Human rights commission urges Korea to abolish death penalty
[Global Finance Awards] Shinhan chief makes big ESG push
Uncertainties remain for Samsung, SK after US eases export controls
- Seoul shares open sharply lower on US losses
- 여권 ‘TK 지지율’ 비상…오늘 서울 오는 박근혜에 주목
- [Today’s K
- Revamped 'Sister Act' with diverse cast gets ready for international premiere
- 윤 대통령, 4박 6일 사우디·카타르 순방 마치고 귀국
- KGC wins minister's award for IP management
- Seoul International Pride Film Festival kicks off on Nov. 2
- SK Pharmteco bets big on cell, gene therapy
- 北, 러시아 외무장관 방북 발표…이달 18~19일 방문
- Sumi Jo awarded Geumgwan Order, highest honor for artists
- 송영길 “비례정당 출마 검토”…조국과 연대 가능성도 시사
- Samsung Bioepis to develop MSD's Keytruda biosimilar
- Congressional panel official stresses space
- Seoul shares close higher as US inflation softens
- Seoul subway to hold second strike Nov. 22
- Container shipping costs for US west coast rise 7 pct in October
- Helicopter parent's questions spark debate online
- Posco vows to foster startups, regional economies
- South Korea's Yoon will warn APEC leaders about the risks of a Russia
- US set to deploy B
- Han Sung Motor commits to give back to society
- Naver's QR payment service available in 42 countries
- [Up close in Yeouido] Spy
- ‘Concrete Utopia’ clinches best picture at Daejong Film Awards
- N. Korea tests newly developed solid
- SK to create world's first advanced plastic recycling cluster, breaks ground in Ulsan
- Posco International to build modular factory in Ukraine
- S. Korea, US, Japan reaffirm cooperation
- [Today’s K
- BNK Busan Bank to pilot English