Tuesday 9 January 2018

Samsung profit guidance disappoints, memory outlook cloudy

SEOUL (Reuters) - Samsung Electronics Co Ltd <005930.KS> said it would likely rake in a record fourth-quarter profit but the guidance fell short of consensus estimate, spooking investors already worried that a memory chip boom could be ending sooner rather than later.

Shares of Samsung fell almost 4 percent as the world's biggest chipmaker became one of the first major semiconductor firms to indicate disappointing results could be on the radar at a time when NAND memory chip prices are easing.
Samsung pegged its October-December operating profit at 15.1 trillion won ($14.1 billion), an all-time high and up 64 percent from a year ago but shy of a 15.9 trillion won average estimate from 17 analysts surveyed by Thomson Reuters. It estimated revenue at 66 trillion won, also slightly below expectations.
The Apple Inc <AAPL.O> smartphone rival did not elaborate on its performance. However, two analysts said a strong won and a year-end bonus for staff in the semiconductor business likely dented the South Korean firm's quarterly profit by about 400 billion won and 400-500 billion won, respectively.
Samsung shares ended down 3.1 percent, versus the broader market <.KS11> that fell 0.1 percent and shares in rival SK Hynix <000660.KS> that fell 1.7 percent, amid worries over the outlook for smartphones and the so-called chip "super-cycle".

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