Samsung Shares Take A Dive
As Apple looks for new manufacturing partners shares in Samsung Electronics have slipped after the tech giant said it would likely rake in a record fourth-quarter profit but the guidance fell short of consensus estimates.
The world’s biggest chipmaker became one of the first major semiconductor firms to indicate disappointing results with others set to also report a slow down.
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.
The Apple smartphone rival who is also dependant on parts manufacturing contracts from Apple 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 400-500 billion won, respectively.
Samsung shares ended down 3.1 percent, versus the broader market .KS11 that fell 0.1 percent and shares in rival SK Hynix (000660.KS) that fell 1.7 percent, amid worries over the outlook for smartphones and the so-called chip “super-cycle”.
“The currency effect and bonuses appear to be the main reason for (Samsung) missing market forecasts, but smartphone shipments are also likely to be lower than expected,” said Song Myung-sup, analyst at HI Investment & Securities.