Samsung's weak earnings signal broader trouble to come

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Indonesia Berita Berita

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The dismal profit estimate by the world's largest memory chip, smartphone and TV maker sets a weak tone for other technology firms' quarterly results.

on Friday flagged its quarterly profit tumbled by two-thirds to an eight-year low as a weakening global economy hammered memory chip prices and curbed demand for electronic devices.

Samsung’s profits are expected to shrink again in the current quarter, analysts said, after the South Korean company announced its October-December operating profit likely fell 69% to ₩4.3-trillion from ₩13.87-trillion a year earlier.It was Samsung’s smallest quarterly profit since the third quarter of 2014 and fell short of a ₩5.9-trillion Refinitiv SmartEstimate, which is weighted towards forecasts from analysts who are more consistently accurate.

Quarterly revenue likely fell 9% from the same period a year earlier to ₩70-trillion, Samsung said in a short preliminary earnings statement. Asia’s fourth biggest listed company by market value will release detailed earnings on 31 January.

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