Samsung Electronics Q3 operating earnings to show gain thanks to chips and displays

Samsung Electronics Q3 operating earnings to show gain thanks to chips and displays
Samsung Electronics said on Thursday that it expects third quarter operating earnings to have risen 5% year-over-year to $6.9 billion. That would be 4% above a Thomson Reuters StarMine SmartEstimate of analysts' expectations. Revenue is forecast to have slipped 5% in the three-month period to $43.9 trillion. The final third quarter numbers will be announced later this month.

The figures do not take into account the cost of the manufacturer's recall of the Samsung Galaxy Note 7. No sooner had the device launched to strong demand than a number of units caught on fire leading to a voluntary recall on September 2nd. An official recall in tandem with the U.S. CPSC was announced less than two weeks later.

While the cost of the recall and device exchange could be as high as $1.8 billion, some analysts say that this cost will be more than made up by sales of the company's chips and high-end smartphone displays. According to SK Securities analyst Kim Young Woo, profit generated by Sammy's mobile business in the third quarter was its lowest over the last three quarters. However, earnings from components will more than make up for the Galaxy Note 7 fiasco. "We'll see an earnings surprise in the display and memory chip businesses," said the analyst. "The numbers will show that they are the two growth engines for Samsung."


source: Chron

Related phones

Galaxy Note 7
  • Display 5.7" 1440 x 2560 pixels
  • Camera 12 MP / 5 MP front
  • Processor Qualcomm Snapdragon 820, Quad-core, 2150 MHz
  • Storage 64 GB + microSDXC
  • Battery 3500 mAh

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15 Comments

1. kiko007

Posts: 7521; Member since: Feb 17, 2016

Good for them :D. I still don't see the point in covering analysts and their jargon every quarter.

7. manojmcn

Posts: 634; Member since: Jul 16, 2015

Two minutes silence for the mental peace of 'Anal'ysts!!!

2. Zylam

Posts: 1823; Member since: Oct 20, 2010

It's interesting, the chips and memory division does better when their mobile division does worse than expected. Probably because the other OEM'S saw a rise in sales due to the whole exploding thing. At least some good has come from this whole disaster for Samsung.

12. Kumar123 unregistered

" profit generated by Sammy's mobile business in the third quarter was its lowest over the last three quarters." And it will be even more dreadful for the Q4. If that recalled note 7 explosion is true and Samsung is forced to do a second recall it will be total disaster for samsung mobile. Looks like the dreadful situation for Samsung mobile is not over yet .Samsung as a company is saved by other division profit. And let's not forget the most important part of the explosion saga. The damage of the Samsung mobile reputation. It will take significant amount of money to spend on advertising to regain the trust of the people. Since Samsung is very good at brainwashing public through their ads I think they will succeed in convincing people to buy their phone again.

15. Macready

Posts: 1830; Member since: Dec 08, 2014

"Samsung as a company is saved by other division profit" Reality check: Samsung Mobile still sells more than 300 million phones per year. We're talking little over 2 million recalled devices at best, less than 1% of the total sold. Their profits may be down, there are still profits for the mobile section, never mind the huge reserves they built up over the past years. There is no "saving" needed. As for the analyst quoted, Chang Wong told Bloomberg that the Mobile forecast for 2017 is actually (strongly) upwards.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No dummy. It was because more companies are using Samsung to make their chips. Even though Apple didn't source Samsung for the A10, Samsung signed a deal with Qualcomm to fabricate the SD820. MediaTek is also sourcing Samsung to make chips and so are other companies. Remember Samsung makes all kinds of chips. They make SoC's, they make chips for RAM modules, they make chips for Internal Storage, they make chips for SDCARDS. They fabricate chips for GPU's as well for other OEM's. But you claim you are surprised? I think you are just blind and don't actually read the articles posted right here on PA when it states a company is sourcing Samsung to make chips.

3. vliang86

Posts: 337; Member since: Oct 05, 2015

People should start shorting Samsung stocks.

4. Vickytan

Posts: 21; Member since: Mar 05, 2016

Analysts.... if they are all that great, why are they still working as analysts? It's been proven these "all mighty analysts " are wrong on so many levels and cases. They can shut themselves up with these predictions.

5. truthwins unregistered

Does my one plus 3 has samsung amoled panel too.

9. Unordinary unregistered

A second recall is about to take play supposedly

10. NewroticSlob

Posts: 182; Member since: May 09, 2013

The Count is very angry about skipping the number 6! He's seeking revenge! https://www.youtube.com/watch?v=4-usguSrIpM

11. iC-118

Posts: 260; Member since: Sep 29, 2016

The Note7 is tall and skinny. It's not wide like its previous versions.

18. xfire99

Posts: 1207; Member since: Mar 14, 2012

No mention about Samsung stock after the Q3 operating report and Note 7 disaster?https://www.google.com/finance?cid=14122736 Fast to mention when it take a hikes after Note 7 batteries exploding news but total silence when it goes up and reasons why Samsung stock wasnt affected by Note 7 disaster?

* Some comments have been hidden, because they don't meet the discussions rules.

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