The performance of Samsung in the global market has been remarkably impressive considering all the legal battle that surrounded its leader. The company released profits for Q2 and Q3 this year but market analysts believe that its Q4 performance would dip. The reason for the slashing of Samsung’s profit by analysts is centered around the growing concerns about the semiconductor industryâs growth and we all know that Samsung major profit comes from its semiconductor business.
Gizchina News of the week
Some weeks ago, Morgan Stanley slashed its recommendation on Samsung and since then, the company’s share price dropped. This confirms the fact that memory chip demand will soon skyrocket as NAND prices are reversing. Low revenue for Samsung’s semiconductor business definitely has a huge impact on the general operating profit of the company. To mention but few, Bloomberg news report shows that at least six firms have reduced their estimations for Samsungâs Q4 2017 operating profit. Analysts at Korea Investment Holdings Co. have also cut down its estimates by 7.8 percent while HI Investment & Securities Co. reduced its Q4 2017 operating profit estimate for Samsung by 4.8 percent to $14.5 billion. All these speculations and estimates will be confirmed when the company releases its official earnings guidance Q4 2017.
