Business

Samsung Electronics Q4 2016 earnings expected to beat forecast

Despite the fact that the financial impact of the Galaxy Note 7’s failure will be evident in Samsung Electronics Q4 earnings, analysts are of the view that the Samsung Group’s crown jewel is going to report earnings that beat market forecast for the final quarter of 2016.

Data compiled by industry tracker FnGuide shows that the market predicts Samsung Electronics to post operating income of 7.91 trillion won ($6.66 billion) for the quarter ending December 2016. It would be a healthy increase over the 5.2 trillion won in operating income that the company posted in the previous quarter. Some securities firms in South Korea are more bullish and have raised their earnings outlook to over 8 trillion won.

One firm in particular, IBK Securities Co., predicts that Samsung’s Q4 2016 operating income will cross 8.7 trillion won and will thus be a 68 percent quarter-over-quarter improvement. While the mobile division has cost the company a lot of money due to the Galaxy Note 7’s failure, once again, the chip business division is expected to be the cash cow. The recovering demand for memory chips is giving analysts hope that Samsung Electronics will beat its earnings forecast for Q4 2016. Some expect the company to bring in 4 trillion won in operating profit from its chip division alone.

Samsung will announce its Q4 2016 earnings guidance later this week.

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