Although the revenue of Samsung Electronics in the third quarter was less than half of last year, the overall performance exceeded the market expectations as the smartphone and display business improved.
Samsung Electronics announced its preliminary earnings report for the third quarter on the 8th, with revenue of 62 trillion won and a profit of 7.7 trillion won. Compared with the same period of last year, revenue and profit decreased by 5.29% and 56.18%, respectively, but increased by 10.46% and 16.67% respectively compared with the previous quarter.
The results have exceeded market expectations. According to the Korean media "Daily Economy", the average revenue forecast of several securities companies was 61.529 trillion won and the profit was 7.1085 trillion won. Although compared with last year, the performance of the revenue is not eye-catching, but compared with the previous quarter, the growth rate is more than 10%, the revenue and profit performance are also beyond expectations. Some analysts believe that Samsung Electronics is getting rid of the decline in performance. .
The IM department (mobile phone business) did not meet the expected performance in the previous quarter, but in the third quarter, it launched new products such as Galaxy Note10 series and Galaxy Fold. The profit was about 2 trillion won, which was higher than the previous season (1.56 trillion won). About 30%.
On the other hand, the display business benefited from the peak season of smart phones, and the sales of Flexible OLED panels used in folding screens increased, and revenue and revenue are expected to grow.
In particular, the original market expects Samsung Electronics' rebound to be a semiconductor industry. In contrast, market expectations in this area are too high. At present, the industry generally believes that Samsung Electronics' semiconductor business has not returned to normal performance.
After entering the second half of 2019, NAND flash memory prices began to rise, Samsung also quickly adjusted inventory, but the DRAM market is still sluggish, the situation before the end of the year is still not optimistic.
Relevant people in the industry pointed out that Samsung's performance exceeded market expectations, which also symbolizes that Samsung began to leave the trough, the fourth quarter's revenue may be affected by the off-season and stop growing, but is expected to fully recover next year.