Despite its chief being behind bars, Samsung Electronics has shown no signs of being impacted business wise. On Tuesday, the South Korean tech giant announced that a record operating profit amounting to about 15.1 trillion Korean won (about $14.13 billion) was being expected by the company for the quarter ended December.
While this figure was lower than a market consensus average of operating profits for the company at 15.9 trillion won, it would potentially be a 46 per cent rise in value compared to the same period a year ago.
On the other hand, the average market consensus for the fourth-quarter revenue for the company was 66.8 trillion won while the company said that it the figure would likely be around 66 trillion won for the fourth quarter. Samsung said that it anticipated consolidated operating profit of about 53.6 trillion won for 239.6 trillion won in sales for the full-year of 2017.
Trailing doubts about the business outlook of the company drove down share of Samsung in the stock market with a drop of 1.92 percent in mid-morning trade. There was rise of 0.12 per cent in the broader Kospi index.
“I think the miss, in my opinion, is primarily driven by smartphones,” said Mehdi Hosseini, senior analyst and senior VP of semiconductors at Susquehanna Financial Group in a television interview. “I still think that the semiconductor, driven by memory, and display, driven by OLED displays, did really well.”
New agency Reuters reported that the South Korean tech company would make public the full earnings in late January and it did not elaborate further on its performance.
A major earnings driver for the company in the most recent quarters has been its chip business which has been improving the financial figures of the company that is the largest manufacturer in the world of memory chips, smartphones and other electronics products. The company had explained that the growth in the chip business was due to a rising demand for memory chips from the smartphone industry and the fast-growing large data centers.
Because the December quarter was a period when a number rivals launched new devices in the premium segment of the smartphone market, therefore Samsung had previously commented that there were expectations within the company that there would be severe competition in the segment in the quarter.
Operating profit of 14,5 trillion won ($12.91 billion) was reported by Samsung in the previous quarter. That figure was in line with the earlier guidance issued by the company. in the same quarter, a revenue of about $55 billion was generated by the company. Samsung had said that for the period of 2018-2020 period, it would pay dividends of about 29 trillion won.
(Adapted from CNBC.com)