Disappointing earnings outlook for Samsung Electronics

  • Samsung Electronics expects 35% drop in fourth-quarter operating profit
  • Misses market expectations and dampens hopes for earnings recovery
  • Operating profit estimated at 2.800 trillion won ($2.13 billion)
  • Weaker-than-expected earnings results contradict analysts’ expectations
  • Revenue expected to fall 4.9% to KRW67.000 trillion for the quarter
  • 2023 operating profit expected to plunge 85% to KRW6.540 trillion

Samsung Electronics expects its fourth-quarter operating profit to fall 35% from a year earlier, missing market expectations and dampening hopes for an earnings recovery led by its semiconductor business. The company’s operating-profit estimate missed the FactSet-compiled consensus forecast for the December quarter. Weaker-than-expected quarterly earnings results would run against expectations from most market analysts that Samsung’s flagship memory-chip business could continue to improve and drive its overall recovery. Revenue is also expected to decline for the quarter. Looking ahead, Samsung’s 2023 operating profit is forecasted to plunge 85%.

Public Companies: Samsung Electronics (N/A)
Private Companies:
Key People:

Factuality Level: 8
Justification: The article provides specific figures and quotes from Samsung Electronics regarding their fourth-quarter operating profit. It also mentions the market expectations and consensus forecast, which can be verified. However, it does not provide any additional sources or perspectives to support the information presented.

Noise Level: 7
Justification: The article provides information on Samsung Electronics’ fourth-quarter operating profit, which is lower than expected. It mentions market expectations, the company’s flagship memory-chip business, and future forecasts. However, it lacks in-depth analysis, evidence, and actionable insights. The article stays on topic and does not dive into unrelated territories.

Financial Relevance: Yes
Financial Markets Impacted: Samsung Electronics

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Samsung Electronics’ fourth-quarter operating profit and revenue forecasts, which are expected to fall compared to the previous year. However, there is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com