SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

News For You
News For You
Notifications

Samsung announces Q4 2018 earning guidance, operating profit down 29%

Business
By 

Last updated: January 8th, 2019 at 11:32 UTC+01:00

Samsung recorded its highest ever profits last quarter, but three months on things aren’t looking so great. The company just announced its earnings guidance for Q4 2018 with an estimated 29 percent drop in profit. Weak demand in the memory division caused the profits to decrease sharply, Samsung said.

In a regulatory filing, Samsung estimated sales worth 59 trillion won (about $52.5 billion) during Q3 2018. This is down 9.87 percent from 65.46 trillion won ($58 billion) in the previous quarter.

No improvements expected in Q1 2019

Samsung estimated profit at about 10.8 trillion won ($9.67 billion) for October-December last year, down 29 percent from the same period a year earlier. This is Samsung's lowest profit since Q1 of 2017. And the company expects the profits to remain subdued in the first quarter of 2019 as well, owing to weak seasonality in the memory market.

The market is likely to improve in the second half of the year as new smartphones release. Samsung may be pointing to its 5G and foldable devices to improve its mobile division’s performance. The company's OLED panels for smartphones will also continue to increase market penetration. Analysts, however, expect Samsung's profit to decline through 2019 as a slowing Chinese economy erodes demand for its chips and handsets.

Samsung does not usually explain the details behind its estimates, but instead waits for the full earnings release. The company, however, issued a statement for earnings guidance on Tuesday to “ease confusion” among investors, who are already on the edge. The forecast is based on estimates made under K-IFRS. The estimated data don’t include the performances of respective business divisions. The finalized earnings report for Q4 2018 is expected to be announced later this month.

Via Source Business Earnings
Galaxy AI summarized

Scroll for more related content
News For You

You might also like

Samsung’s profit jumps 72.8% in Q3 2024 despite chip struggles

Samsung’s profit jumps 72.8% in Q3 2024 despite chip struggles

Earlier today, Samsung announced its earnings for the third quarter of 2024. While the company's profits beat market expectations, its struggles in the memory chip market remain. The South Korean firm reported a consolidated revenue of KRW 79.1 trillion ($57.34 billion) and an operating profit of KRW 10.1 trillion ($7.3 billion). Samsung's net profit in […]

  • By Asif Iqbal Shaik
  • 2 weeks ago
Samsung’s profit rises 14.5x amid AI chip boom

Samsung’s profit rises 14.5x amid AI chip boom

After announcing its revenue estimates earlier this month, Samsung has announced its financial results for the second quarter of this year. The South Korean firm reported a 23.42% rise in revenue and a meteoric rise of 1,458% in operating profit in Q2 2024 compared to last year. These better-than-expected numbers are due to the rise […]

  • By Asif Iqbal Shaik
  • 3 months ago
Samsung’s profit surged 15x in Q2 2024, thanks to the AI boom

Samsung’s profit surged 15x in Q2 2024, thanks to the AI boom

Samsung has had a rough couple of years, but the company has emerged with full force to ride the AI boom. The company revealed that it expects its Q2 2024 operating profit to surge 15x, thanks to strong sales of semiconductor chips. These figures are better than market estimates. Samsung's Q2 2024 profit could be […]

  • By Asif Iqbal Shaik
  • 4 months ago
Samsung’s battery sales decline despite higher EV business

Samsung’s battery sales decline despite higher EV business

Samsung has a battery manufacturing division called Samsung SDI, which makes batteries for products ranging from smartphones to EVs. Earlier today, Samsung SDI announced its financial results for Q1 2024. The company's sales have fallen despite higher EV business, but the company vows to become a “global top-tier company by 2030.” Samsung SDI profits fall […]

  • By Asif Iqbal Shaik
  • 7 months ago
Samsung profit jumps 933% to $4.8 billion in Q1 2024, beating estimates

Samsung profit jumps 933% to $4.8 billion in Q1 2024, beating estimates

Samsung has revealed its financial results for the first quarter of this year, a few weeks after revealing revenue estimates. The company revealed that its revenue rose 13% compared to Q1 2023, while its profit skyrocketed nearly 10x (933%) compared to the year earlier. Samsung's profit jumps nearly 10x in Q1 2024, thanks to strong […]

  • By Asif Iqbal Shaik
  • 7 months ago
Samsung’s profit rises by 931% in Q1 2024 as chip sales recover

Samsung’s profit rises by 931% in Q1 2024 as chip sales recover

Samsung has been struggling over the past couple of years, especially due to its most important product: memory chips. However, things now seem to be improving financially, as the company has reported a huge rise in its profit. Earlier today, Samsung revealed its earnings guidance for Q1 2024. Samsung's profit rises 931% on the back […]

  • By Asif Iqbal Shaik
  • 7 months ago