Samsung estimates record profits in fourth-quarter; however, figures fall short of anticipations

Company - Mohit Shah - Jan 09,2018

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samsung estimates record profits in fourth quarter however figures fall short of anticipations

On Tuesday, Samsung Electronics said it was anticipating record operating profit close to 15.1 trillion Korean won ($14.1 billion) considering the December quarter.

Samsung stated, its fourth-quarter revenue was expected 66 trillion won, which was somewhat lesser as per the predicted average forecast of 66.8 trillion won. The world’s biggest memory chip maker company further added, for the complete duration of 2017 it was expecting combined operating profit of about 53.6 trillion won in contrast to 239.6 trillion won in sales.

This particular forecast has kept Samsung on track to achieve record annual profits, especially in a year when computer memory chip prices kept dipping.

Considering the 2018 outlook, things are not assured. It has been noted that Samsung shares have dropped by nearly 10% from its all-time high mark recorded in November.

The South Korean tech giant, however, is certain for a stable growth in the coming years. Looking at the recent quarters, the world's renowned manufacturer of memory chips, smartphones as well as other electronics products has experienced its prosperous semiconductor business transform into a major revenue driver. According to Samsung, this is primarily due to robust demand for memory chips from new smartphones and data centers.

Samsung, in the previous quarter, reported an operating profit worth 14.5 trillion won ($12.91 billion). Further, it had also acquired a quarterly revenue close to $55 billion and said the company would pay dividends close to 29 trillion won during the 2018-2020 period.

The tech company has done well to revive out of significant scandals occurring in the recent past. The jailing of Lee Jae-yong (apparent heir) on the grounds of bribery and corruption, along with a disturbed reputation for Samsung in 2016 after the global recall of its Note 7 smartphone.