Samsung likely to achieve record profit in Q3, analysts say
SEOUL: Samsung Electronics, the world’s largest electronics maker, is expected to record its highest-ever operating profit in the third quarter of this year, according to financial analysts on Thursday.
The market consensus for Samsung’s operating profit released on Tuesday by financial information institute FnGuide prior to the release of the earnings guidance on Friday was 9.9 trillion won (US$9.2 billion), up from 9.5 trillion won in the previous quarter.
The FnGuide report estimated that Samsung would record 59 trillion won in revenue and 8.5 trillion won in net profit in the July-September period.
Top executives of Samsung previously also hinted at a rosy picture on the figures.
Samsung Electronics vice chairman Lee Jay-yong reportedly said last week to reporters that “(the figures) will be good”.
Shin Jong-kyun, president of the IT and mobile division of Samsung Electronics, also said in a meeting with reporters on Wednesday that “business performance in the third quarter would be better than that of the second quarter”.
Stock analysts had lowered the operating profit estimation from more than 10 trillion won considering the slowing TV business and currency devaluations of emerging markets, according to the report.
“The disappointing performance in Samsung’s System LSI business due to the lower-than-expected sales of the new iPhones and aggressive marketing tactics of manufacturers for low-end, big-screen TVs such as VIZIO are attributable to the estimates lower than the previous ones,” said Byun Han-jun from KB Investment & Securities.
Market analysts expect that Samsung will achieve a 10 trillion won breakthrough in profit in the next quarter backed by the growing sales of the Galaxy Note 3 and an increasing demand for memory, triggered by a fire at an SK Hynix production line in China.
– By arrangement with the ANN/The Korea Herald –