Feeds

Samsung: Ta-da! We made $7.8bn. What do you mean you expected another BILLION?

Firm misses the hell out of estimates as mobe sales drop

The next step in data security

Samsung Electronics has missed analysts' estimates of its operating profit for the fourth quarter of last year, after a one-off special bonus for employees and slowing demand for high-end smartphones.

The company said that its guidance ahead of the full results on January 24 put operating profit at 8.3 trillion won ($7.8bn, £4.76bn), down 18 per cent from the previous quarter's record earnings and six per cent less than the profit for the same quarter in the previous year.

Analysts had expected lower profits, but the figure is a whopping 1.45 trillion won ($1.35bn, £828m) below Thomson Reuters' Starmine SmartEstimate, made up of the forecast of 23 analysts, which came out at 9.75 trillion won ($9.24bn, £5.64bn).

Profits were expected to be hit partially because of a special bonus for the 20th anniversary of the "New Management" plan of Chairman Lee Kun-hee, which has been estimated at between 300bn and 700bn won on special incentive payments to workers. There are also fears that the slowing smartphone sector is hitting both Samsung's Galaxy line-up and its business supplying displays and chips for rivals like Apple.

On top of that, investors are worried about the won currency's strengthening position against the dollar, which will hit Sammy's export earnings. Shares have fallen by ten per cent in the last month, wiping a hefty $19bn off the company's market value. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.