Samsung’s fourth-quarter operating profit estimates slashed yet again
Samsung has had a pretty good year despite the legal troubles of its leader. The company posted record profits in the second and third quarters of this year. It’s actually on track for a record full-year profit. However, market analysts are now predicting lower profits for Samsung in the fourth quarter of this year.
Two more analysts have slashed their estimates for Samsung’s fourth-quarter operating profit as concerns about the semiconductor industry’s growth mount.
Samsung’s fourth-quarter operating profit
Samsung’s share price dipped three weeks ago when Morgan Stanley cut its recommendation on Samsung. It justified the move by pointing out that NAND prices have started to reverse this quarter and that the memory chip demand will peak soon.
Samsung’s semiconductor business has been the true cash cow in the past two quarters. Falling revenues for this division will result in an impact on the overall operating profit of the conglomerate.
HI Investment & Securities Co. has cut its Q4 2017 operating profit estimate for Samsung by 4.8 percent to $14.5 billion. Analysts at Korea Investment Holdings Co. have slashed their estimates by 7.8 percent for the same figure.
Data compiled by Bloomberg shows that six investment firms have lowered their estimates for Samsung’s Q4 2017 operating profit in the past four weeks.
Samsung hasn’t responded to any of this as yet. The situation will be clear when it releases the official earnings guidance for this quarter in the coming weeks.Via