Samsung Q3 estimates beat forecast, but still disappoints

Samsung Q3 estimates beat forecast, but still disappoints

Summary: Samsung is slightly more optimistic than financial analysts about its third quarter earnings estimates, but profits are still down.

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Samsung has been bleeding money over the past year, but the revision of its third quarter earnings estimates suggests that it found a tiny band-aid.

The Seoul-based corporation announced its pre-earnings guidance figures on Friday, and here's where it stands now. Instead of the original forecast of 3.4 trillion won ($2.9 billion), Samsung is expecting third quarter operating profits of 4.20 trillion won ($3.6 billion). However, that is still roughly 14 percent less than what Samsung was producing one year ago.

Third quarter sales are predicted to be around 41.0 trillion won ($34.7 billion). Samsung is expected to reveal Q3 earnings later this month.

Nevertheless, despite disappointing flat screen sales, falling memory chip prices, and even a number of lawsuits worldwide concerning the Galaxy S series, some analysts are accrediting the improved estimates to its smartphone division. Reuters reports:

"I think Samsung's telecom business was a big positive surprise, and other businesses fared better than expected," said Ahn Seong-ho, an analyst at Hanwha Securities.

"I previously thought Apple's new iPhone would slow Samsung's handset earnings momentum, but there was no iPhone 5, and the iPhone 4S will not be a burden on Samsung in the fourth quarter."

Samsung and other mobile manufacturers might not want to wave off the iPhone 4S so quickly, despite mixed reviews. We'll know more after the iOS device starts shipping next week, but remember this lesson: Sony Ericsson's CEO recently said that his company should have taken the original iPhone more seriously when it was released in 2007. Any chance that analysts and executives will be saying the same thing about this device a few years down the line?

Related:

Topics: Samsung, iPhone, Smartphones

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  • Humiliation!

    Samsung Electronics makes 2x the revenue of Apple, but 2.5x less net-income! I guess too much bloat going on in Seoul!
    MSFTWorshipper
    • RE: Samsung Q3 estimates beat forecast, but still disappoints

      @MSFTWorshipper Is cuz Apple products are overpriced but still sels
      pepe-el-Toro
    • Why the word market share is misleading

      @MSFTWorshipper

      If you look at unit sales, then you'd think Android was "winning" the market. However, unit sales <em>aren't</em> what you should be looking at. What you really want to do is look at who is raking in what share of the <em>profits</em>. By that metric, Apple is absolutely dominant in smartphones.

      I believe they also roughly rival all other PC vendors, as well, despite having less than 10% "marketshare."
      x I'm tc
      • RE: Samsung Q3 estimates beat forecast, but still disappoints

        @jdakula Apple makes as much profit on 1 iPhone as Samsung does on 3 Galaxy SIIs.
        MSFTWorshipper
      • Apple Is So Damn Profitable ...

        ... but why is that a selling point? That they are so good at keeping the money that customers give them, why should that persuade me to give them mine?
        ldo17
  • RE: Samsung Q3 estimates beat forecast, but still disappoints

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    ghetset
  • RE: Samsung Q3 estimates beat forecast, but still disappoints

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    snapcrowd
  • RE: Samsung Q3 estimates beat forecast, but still disappoints

    Chasing category leaders like Apple from a DEVICE standpoint has yielded great results for Samsung. They are going after Apple's bramd and product appeal and are doing an admirable job at the expense of lawsuits.

    However, they will continue to fight the battle on a quarterly basis and a mistep could hurt. Apple's long term plan with its iCloud ecosystem could change he race for Samsung who is just pointing at Tablets, phones and thi notebooks.
    flyguy29
    • RE: Samsung Q3 estimates beat forecast, but still disappoints

      @flyguy29 But Samsung can't compete in the USA for one simple reason - no magical retail stores dedicated to Samsung products. The Apple Stores have been HUGE in terms of building up Apple's brand identity the last 10 years.
      MSFTWorshipper
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