Samsung’s 2020 revenue targets are becoming more unrealistic by the day as the planet remains embroiled in the coronavirus pandemic. Following the tremulous first quarter of the year, insiders are now convinced the firm will be slashing its original earnings forecast by a significant margin.
As one of the largest businesses in the world, Samsung’s chances of weathering through the current crisis are better than most, though that isn’t to say the chaebol will emerge from this episode completely unscathed. Quite the contrary: Being as entrenched in as many industries as it is, the technology juggernaut almost certainly started feeling the effects of the current predicament faster than your average multinational corporation.
Samsung anticipates massive setback across the board
More specifically, the worst-case internal projections from the company anticipate it missing annual targets by a two-digit percentage, sources close to the conglomerate claim. Samsung investors may find some solace in the fact that the impending earnings guidance from the firm won’t reflect the worst effects of the COVID-19 pandemic seeing how its consequences only started manifesting globally last month.
Samsung already closed many of its factories around the world as part of containment efforts, as the virus began spreading within its own ranks. The company’s panel-manufacturing arm, Samsung Display, is also likely to experience a significant performance decline over the course of 2020, both due to lowered production volumes and a drop in demand for all manners of screen modules. The demand for Samsung Electronics’ TVs is also projected to be steep, what with both the 2020 football Euros and Tokyo Summer Olympics being postponed until next year.
Samsung’s first-quarter earnings guidance is scheduled for tomorrow, whereas a full-fledged financial report for the same period is expected to follow at the end of April.