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

Next gen security for virtualised datacentres

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. ®

Build a business case: developing custom apps

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
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
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?