Samsung Expects Q3 Operating Profit Growth Amid Note7 Recall
Samsung has today released its earnings guidance for the 2016 third quarter, revealing that it expects to post year-on-year operating profit growth as it continues to deal with its Galaxy Note7 smartphone recall.
Samsung stated that it expects operating profit of approximately 7.8 trillion Korean won (around $9.25 billion), up from 7.39 trillion won year-on-year.
As reported by Reuters, Samsung’s expected operating profit compares to a Thomson Reuters StarMine SmartEstimate of analysts’ forecasts of 7.4 trillion won.
Sales for the quarter are expected to come in at approximately 49 trillion won, down from 51.68 trillion won year-on-year, Samsung has advised.
The earnings forecast comes against the backdrop of Samsung’s Note7 recall, the impact of which will be a point of interest in the company’s final results for the quarter.
As reported by Reuters, analysts had lowered expectations for Samsung’s third-quarter earnings following announcement of the recall.
It may be that other areas of Samsung’s business deliver a strong performance, with Reuters reporting some analysts as stating its semiconductor division could post its best operating profit in four quarters amid rising memory chip prices due to increased demand from smartphone manufacturers.