Samsung's Q4 profits could see a 3-year high
Due to the Galaxy Note 7 fiasco, Samsung might have had it rough in the third quarter of 2016, but its earnings guidance suggests a surprising 50% year-on-year leap thanks to robust chip and smartphone sales to the tune of a depreciating yen.
Although revenue will fall and the company will have to deal with a $2.1 billion profit loss caused by the Note 7 recall, it is on track for a quicker than anticipated recovery. Strong demand for memory chips and OLED displays are expected to make up for the profit loss. Notably, the company's chip division could earn over $3.4 billion dollars in operating profit, thanks to dealing with Apple and sales of high-end data storage.
Operating profit for the October – December quarter is estimated at $7.8 billion, the highest since Q3 2013 and above analysts' biggest expectations. Samsung will officially disclose its Q4 earnings in late January.
Although revenue will fall and the company will have to deal with a $2.1 billion profit loss caused by the Note 7 recall, it is on track for a quicker than anticipated recovery. Strong demand for memory chips and OLED displays are expected to make up for the profit loss. Notably, the company's chip division could earn over $3.4 billion dollars in operating profit, thanks to dealing with Apple and sales of high-end data storage.
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