Analysts expect a slowdown in Samsung’s earnings growth in Q3 2017
Samsung became the world’s most profitable tech company in Q2 2017. It posted an operating profit of $12.67 billion for the quarter, a 72.7 percent improvement compared to the same period last year. Revenue clocked in at $54.7 billion for the April-June 2017 period.
The company will certainly work hard to ensure that it maintains this momentum. Market analysts are of the view that we might see a slowdown in Samsung’s earnings growth in Q3 2017. Samsung is expected to post an operating profit of $12.2 billion for the July-September 2017 period.
It’s still going to be a significant improvement compared to the same period last year. Samsung posted $4.7 billion in operating profit for the third quarter of 2016. That itself was a year-on-year decrease of $1.93 billion.
The Galaxy Note 7 had a huge impact on Samsung’s earnings in Q3 2016. Prior to the flagship’s recall, Samsung was actually expecting a slight increase in operating profit for the quarter. It ended up having to deal with a recall that cost it billions of dollars.
Samsung’s operating profit for Q3 2017 is expected to drop quarter-over-quarter due to a slight decline in profits from its display business. Analysts expect that Samsung’s profitability for its OLED products will decrease as the price of LCD panels continues to fall.