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Samsung Elec’s quarterly profit tumbled by two-thirds to an eight-year low
On January 6, Samsung announced provisional results for the fourth quarter of 2022 with sales of 70 trillion won and operating profit of 4.3 trillion won on a consolidated basis. Compared to the third quarter, Samsung Elec’s fourth-quarter profit plunged by two-thirds to an eight-year low.
According to Samsung, in the fourth quarter, sales decreased by 8.83% and operating profit by 60.37% QoQ, whereas sales decreased by 8.58% and operating profit by 69% YoY. Some of the major causes behind huge losses are hammered memory chip prices and curbed demand for electronic devices.
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Samsung Elec earnings guidance Q4, 2022
- Consolidated Sales: ~ 70 trillion Korean won
- Consolidated Operating Profit: ~ 4.3 trillion Korean won
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The world’s largest memory chip, smartphone and TV maker published its provisional performance estimation, which is based on the International Financial Reporting Standards (IFRS) adopted in Korea. The company shared this estimation for the convenience of investors.
In the smartphone business, Samsung is focussing on the Galaxy Z and Galaxy A series devices. It has been noticed that the sales of Galaxy devices increased but profit declined due to high sales of mid-range and budget devices. The company is going to reveal Galaxy S23 series next month, which will help it recover.
Due to the downturn in the global electronics market, Samsung recorded this radically low profit in the fourth quarter. Since the company’s foundry business is under threat, customers like Qualcomm are approaching alternatives for chipset printing such as TSMC.
Samsung quarterly earnings forecasts
Way back in July 2009, Samsung Electronics provided quarterly earnings forecasts for the first time in Korea. Later, the company applied IFRS in advance in 2010 to provide information based on global standards so that investors can more accurately predict earnings and judge corporate value.