Samsung Q1 Revenue To Disappoint Market
Samsung Electronics has informed investors its Q1 revenue will likely miss market forecasts, citing an “earnings shock” which has continued to affect its memory and display business.
Reported by Korean news outlet, etnews, it’s unusual for Samsung to post explanatory data before its earnings announcement, with commentators questioning when a rebound will occur.
Consenus expectations forecast Q1 operating profit to notch 7.9 trillion won, however, some analysts are tipping as low as 6 trillion won (U$5.3 billion).
The figure is less than half 15.6642 trillion won reported in the first quarter of last year.
Samsung claims OLED component demand and price competition has lead to deteriorating profitability and lower-than-expected results.
The memory market – which propelled earnings growth last year – is forecast to slightly decline, due to seasonality.
The news comes as Samsung Electronics seeks to increase product differentiation, alongside improved cost competitiveness and resource management.