Samsung Electronics 005930,
It expects its fourth-quarter operating profit to decline 35% from a year earlier, which misses market expectations and dampens hopes for a profit rebound led by its semiconductor business.
The world's largest maker of memory chips, smartphones and TVs said in a preliminary earnings forecast on Tuesday that its operating profit is expected to reach 2.800 trillion won ($2.13 billion) for the October-December quarter, compared with 4.310 trillion won for the same period last year. . Earlier in the year.
The company's operating profit estimates beat FactSet's consensus forecast of KRW 3.797 trillion for the December quarter.
The weaker-than-expected quarterly earnings results will run counter to most market analysts' expectations that Samsung's flagship memory chip business can continue to improve and drive its overall recovery thanks to rising DRAM prices and strong demand for powerful AI computing chips.
The company is scheduled to announce its full quarterly results later this month.
The South Korean tech giant said revenue is expected to decline 4.9% to 67,000 trillion KRW during the quarter.
For 2023, operating profits are expected to decline by 85% to KRW 6.540 trillion, while revenue is expected to decline by 15% to KRW 258.160 trillion.
