Samsung Electronics earnings are expected to plunge nearly 80% in the third quarter, according to analyst forecasts.
Memory chip prices have fallen dramatically this year due to a glut caused by oversupply and low demand for end products like smartphones and laptops. The South Korean technology giant will issue earnings guidance on Wednesday. Analysts polled by LSEG expect operating profit of 2.3 trillion Korean won for the September quarter, a 78.7% year-on-year decline. Revenue is expected to come in at 67.8 trillion won, a fall of 11.6%, according to LSEG consensus forecasts.
Daiwa Capital Markets said in a note earlier this month that it expects Samsung earnings to miss consensus estimates"due to the higher cost burden from the memory production cut and ongoing soft demand" for its chip manufacturing unit, known as the foundry business.