The best Samsung deals! Galaxy Book 4 series, Watch 6, S24 Ultra or Z Flip 5! - Join SamMobile on Telegram!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Notifications
    News for you

    Samsung announces Q4 2018 earning guidance, operating profit down 29%

    Business
    By 

    Last updated: January 8th, 2019 at 11:32 UTC+01:00

    Samsung recorded its highest ever profits last quarter, but three months on things aren’t looking so great. The company just announced its earnings guidance for Q4 2018 with an estimated 29 percent drop in profit. Weak demand in the memory division caused the profits to decrease sharply, Samsung said.

    In a regulatory filing, Samsung estimated sales worth 59 trillion won (about $52.5 billion) during Q3 2018. This is down 9.87 percent from 65.46 trillion won ($58 billion) in the previous quarter.

    No improvements expected in Q1 2019

    Samsung estimated profit at about 10.8 trillion won ($9.67 billion) for October-December last year, down 29 percent from the same period a year earlier. This is Samsung's lowest profit since Q1 of 2017. And the company expects the profits to remain subdued in the first quarter of 2019 as well, owing to weak seasonality in the memory market.

    The market is likely to improve in the second half of the year as new smartphones release. Samsung may be pointing to its 5G and foldable devices to improve its mobile division’s performance. The company's OLED panels for smartphones will also continue to increase market penetration. Analysts, however, expect Samsung's profit to decline through 2019 as a slowing Chinese economy erodes demand for its chips and handsets.

    Samsung does not usually explain the details behind its estimates, but instead waits for the full earnings release. The company, however, issued a statement for earnings guidance on Tuesday to “ease confusion” among investors, who are already on the edge. The forecast is based on estimates made under K-IFRS. The estimated data don’t include the performances of respective business divisions. The finalized earnings report for Q4 2018 is expected to be announced later this month.

    Via Source Business Earnings

    You might also like

    Samsung expects its 2023 profit to drop by 85% compared to last year

    Samsung expects its 2023 profit to drop by 85% compared to last year

    Last year was extremely challenging for Samsung, as smartphone and semiconductor chip sales were quite low. Those are the two most important product categories for Samsung. However, the company and even analysts expect this new year to be much better as sales are recovering. Today, Samsung Electronics posted its earnings guidance for the fourth quarter […]

    • By Asif Iqbal Shaik
    • 3 months ago
    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Three weeks after revealing its earnings guidance, Samsung Electronics revealed its full earnings data for Q3 2023. The South Korean firm's revenue was KRW 67.4 trillion (around $49.86 billion) during the July-August period, and its operating profit was KRW 2.43 trillion (around $1.79 billion). That's the highest quarterly profit the company achieved this year, and […]

    • By Asif Iqbal Shaik
    • 5 months ago
    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung has been going through tough times due to the downturn of the semiconductor chip segment, leading to huge losses for the company. However, it looks like the company is recovering from that downturn and narrowing losses in its semiconductor chip business. Samsung has reported earnings guidance for Q3 2023, revealing better-than-expected results. Its profits […]

    • By Asif Iqbal Shaik
    • 6 months ago
    Samsung’s battery business gets record profit, thanks to higher EV demand

    Samsung’s battery business gets record profit, thanks to higher EV demand

    A few days ago, Samsung Electronics announced a 95% drop in its operating profit due to the worst downturn in the history of semiconductor chips. However, the company's battery manufacturing and electronics material business, Samsung SDI, isn't doing so badly. In fact, it is thriving, and it has recorded its highest-ever second-quarter revenue and profit. […]

    • By Asif Iqbal Shaik
    • 8 months ago
    Samsung reveals Q2 2023 earnings, profit nosedives to 14-year low

    Samsung reveals Q2 2023 earnings, profit nosedives to 14-year low

    Samsung has been going through some tough times. Over the past year, its semiconductor chip business has seen a massive downturn amid global economic woes. Since most of the company's profits usually come from its semiconductor chips business, it has been hit hard. The South Korean firm unveiled its earnings estimate for Q2 2023, and […]

    • By Asif Iqbal Shaik
    • 9 months ago
    Samsung’s profits decline by a massive 95% on weak chip demand

    Samsung’s profits decline by a massive 95% on weak chip demand

    The global semiconductor demand has remained weak over the past year and that has significantly affected Samsung's ability to turn a decent profit. The firm's semiconductor division is its biggest cash cow and when it's under pressure, the effects are visible on the company's bottom line. Samsung has announced its Q1 2023 earnings today and […]

    • By Adnan Farooqui
    • 11 months ago