Samsungs operating profit falls 69 to an eight year low

Samsung’s operating profit falls 69% to an eight-year low

Industry analysts yesterday attempted to forecast preliminary fourth-quarter results for Samsung Electronics, but the reality turned out to be worse than expected as the company’s own estimates resulted in a 69% fall in operating profit to $3.4 billion. knock down dollars. this is the lowest value since the third quarter of 2014. In fact, some analysts are now not ruling out that Samsung will post an operating loss in the current quarter.

    Image source: Samsung Electronics

Image source: Samsung Electronics

Samsung’s quarterly revenue over the past three months as explained by Bloomberg, down 9% year-on-year to $55.4 billion. The company will publish a detailed report later this month, but for now it can only operate on these two financial measures. Notably, Samsung stock reacted to the news by surging 1% in listings, but moved in sync with SK Hynix shares in that direction. Experts attribute this dynamic to investors’ hopes for a reduction in memory production, which will have a salutary effect on the company’s business. In the fourth quarter, memory production increased by 10% even though the average selling price fell by 28%.

Samsung Electronics said in October that the company would not cut its 2023 investment program, which was already at odds with rival companies Micron and SK hynix. Analysts say the intrigue now lies in Samsung’s willingness to reconsider its current year’s capital spending or keep the same setup. Some industry experts believe Samsung’s financial performance will continue to deteriorate in the current quarter and could end the period with an operating loss.

Samsung admitted that the performance deterioration in its memory business was more pronounced than expected in the fourth quarter as customers continued to struggle with excess inventory in a challenging macroeconomic environment. The direction of smartphones also showed a negative trend due to the ongoing economic crisis.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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