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 essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?