Samsung projects 9.1 trillion won Q3 profit, misses market estimates

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Samsung projects 9.1 trillion won Q3 profit, misses market estimates

Published: 08 Oct. 2024, 09:13 Updated: 08 Oct. 2024, 10:03

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

Samsung Electronics' Seocho office in southern Seoul [NEWS1]

Samsung Electronics is expected to log 9.1 trillion won ($6.8 billion) in profit for the third quarter, failing to meet market expectations as the Korean chip giant could not find a breakthrough in the highly competitive AI chip market.

The tech behemoth, in preliminary earnings announced Tuesday, said its third-quarter operating profit is expected to reach 9.1 trillion won, a 274.5 percent on-year jump. It hovered below market expectations of 10.8 trillion won, according to data compiled by FnGuide.

Its revenue was 79 trillion won during the July-September period, a 17.21 percent jump compared to the year before. That also fell below market expectations of 80.9 trillion won.

Samsung Electronics' worse-than-expected earnings largely stem from the slow recovery in the chip sector, according to local analysts.

The preliminary earnings do not provide a breakdown per sector, but its Device Solutions (DS) division, in charge of the chip business, is forecast to have logged an operating profit in the 5 trillion won range, dipping from the previous quarter's 6.5 trillion won.

Samsung Electronics Vice Chairman Jun Young-hyun, head of the DS division, apologized for the disappointing figures.

"Samsung Electronics management would like to apologize to customers, investors and employees," Jun said in a rare message issued straight after the preliminary earnings were announced.

"We will turn this challenging situation into an opportunity to leap forward again. Most of all, we will restore our fundamental competitiveness in technology."

Samsung Electronics shares opened at 60,500 won Tuesday morning, a 0.82 percent drop from the previous trading day.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]