Samsung Electronics says profit may fall less slightly than analyst expectations
Samsung Electronics Co Ltd said on Wednesday that its quarterly operating profit is likely to fall at a milder pace compared to analyst forecasts, indicating the recovery of memory chip prices from an industry downturn.
The announcement sent Samsung’s share price up 2.2% in morning trade compared to the wider market’s 0.8% fall.
The world’s biggest manufacturer of memory chips has been seeing a drop in revenue since late 2018 as rising inventories strangled prices and a weak global economy prevented spending from data center customers.
Samsung said it expected to report a 34% drop in operating profit at 7.1 trillion Won ($6.04 billion) later this month for its fourth quarter compared to the forecast of 6.5 trillion Won operating profits from Refinitiv SmartEstimate.
Annual operating profit likely fell 53% to 27.7 trillion Won, making it the lowest since 2015.