Samsung logo displayed on a phone screen with a binary code reflected on it, a laptop keyboard, a memory card, an adaper and cables are seen in this illustration photo taken in Krakow, Poland on January 30, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Jakub Porzycki | Nurphoto | Getty Images
Samsung Electronics on Wednesday posted a 34.57% drop in operating profit in the fourth quarter from a year ago, in line with its guidance issued earlier this month.
Here are Samsung’s fourth-quarter results versus estimates:
- Revenue: 67.78 trillion Korean won (about $51 billion), vs. 69.27 trillion Korean won expected by LSEG analysts
- Operating profit: 2.82 trillion Korean won, vs. 3.43 trillion Korean won expected by LSEG analysts
Samsung’s revenue for the quarter ending December fell 3.8% from a year ago, while operating profit dropped 34.57% in the same period.
In its earnings guidance earlier this month, Samsung said it expected operating profit for the October-December quarter to be 2.8 trillion South Korean won ($2.13 billion), down 35% from the same period a year ago when the firm reported an operating profit of 4.31 trillion won.
Samsung said its fourth-quarter revenue and operating profit improved from the third quarter due to a recovery in memory chip prices and “continued strength” in sales of premium display products.
Samsung is the world’s largest maker for dynamic random-access memory chips which are found in consumer devices such as smartphones and computers.
Daiwa Capital Markets in a Jan. 9 report said Samsung’s revenue and operating profit estimates were “lower than our market estimates.”
“We assume that memory business earnings improved sharply on increased memory shipment and prices,” said SK Kim of Daiwa Capital Markets after Samsung’s preliminary earnings.
As global macroeconomic headwinds persist, Samsung expects its earnings in the first six months of 2024 to show a “moderate improvement” followed by “a more significant improvement” in the…
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