Samsung shares slip on lowered forecast
Samsung Electronics said it would likely rake in a record fourth-quarter profit but the guidance fell short of consensus estimate, spooking investors already worried that a memory chip boom could be ending sooner rather than later.
Shares of Samsung fell 3 percent as the world’s biggest chipmaker became one of the first major semiconductor firms to indicate disappointing results could be on the radar at a time when NAND memory chip prices are easing.
Samsung pegged its October-December operating profit at 15.1 trillion won ($14.1 billion), an all-time high and up 64 percent from a year ago but shy of a 15.9 trillion won average estimate from 17 analysts surveyed by Thomson Reuters. It estimated revenue at 66 trillion won, also slightly below expectations.
The Apple smartphone rival did not elaborate on its performance. However, two analysts said a strong won and a year-end bonus for staff in the semiconductor business likely dented the South Korean firm’s quarterly profit by about 400 billion won and 400 billion to 500 billion won, respectively.
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