Local securities firms have lowered Samsung Electronics’ earnings forecasts in the third quarter. The dismal prospects are attributed to fierce, cost-cutting competition in the smartphone market, along with no rise in earnings in the semiconductor sector.
According to financial search firm FN Guide on Sunday, the market consensus compiled by 22 securities showed that the company’s profits in the third quarter would stand at 6.6 trillion won as of Sept. 17.
This is a 6.39 percent drop from the 7.6 trillion won predicted by 24 securities firms on July 17 after Samsung Electronics announced its temporary earnings for the second quarter.
The firm’s estimated sales and net profit dropped each 1.12 percent and 6.65 percent from the previous figure of 50.1 trillion won and 5.4 trillion won.
Yuanta Securities Korea estimated the lowest figure of 6.03 trillion won in operating profits, a drop from 6.6 trillion won earlier. The firm predicted lowered its estimated operating profits by whopping 12 percent from the previous estimate of 2.8 trillion won in its information technology and mobile business.
Kiwoon Securities (6.1 trillion won), KB Investment & Securities (6.3 trillion won) and Ebest Securities (6.4 trillion won) all predicted low operating profits.
Out of 22 securities, only three - Hi Securities (7.09 trilion won), Daishin Securities (7.04 trillion won) and Dongbu Securities (7 trillion won) predicted over 7 trillion won in business profits.
Considering that as many as 18 securities correctly guessed Samsung Electronics' earnings as 7.2 trillion a day before its earnings announcement.
