\tSamsung Electronics forecast another double-digit drop in operating profit for the fourth quarter of 2019, with analysts noting the decline would be lower than previously expected due to a recovery of global chip prices.<\/p>\n
In earnings guidance issued today (8 January), the world\u2019s largest memory chip and smartphone maker predicted operating profit of KRW7.1 trillion ($6.1 billion), down 34 per cent year-on-year, on revenue of KRW59 trillion compared with KRW59.26 trillion in the final quarter of 2018.<\/p>\n
Jeon Kyung-dae, chief investment officer for equities at Macquarie Investment Management Korea, told Bloomberg the fundamentals of Samsung’s chip business are great: \u201cMemory chip prices already turned around in the fourth quarter and the recovery has started earlier than the market\u2019s expectation.\u201d<\/p>\n
The South Korean vendor posted declines in earnings since late 2018, mainly due to falling memory prices.<\/p>\n
Samsung submitted the guidance in a regulatory filing and didn\u2019t break out revenue or operating profit by business division. The company is expected to release detailed earnings later this month.<\/p>\n
Its annual operating profit for 2019 is forecast to fall 53 per cent to KRW27.7 trillion, the lowest since 2015, Reuters reported.<\/p>\n","protected":false},"excerpt":{"rendered":"
Samsung Electronics forecast another double-digit drop in operating profit for the fourth quarter of 2019, …<\/p>\n
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