Samsung has just published the preliminary earnings guidance, which should allow investors and journalists an early look into the financial performance of the company during the last calendar quarter of 2013.
The Q4 operating profit was supposedly around 8.3 trillion won ($7.79 billion). This represents a 6%YoY decrease and 18% QoQ decrease - overall, far from a stellar result.
The total sale revenue was around 59 trillion won as opposed to the 61 trillion industry analysts expected (even after their recent expectation downgrading).
"Even taking into account one-off costs, the (fourth-quarter) profit is lower than expected. Samsung has not provided details, but smartphone profit may have fared worse than expected, given increased marketing expenses," said IBK Investment & Securities analyst Lee Seung-woo.
Analysts consider that the bottom line was likely hurt to an extent by the substantial bonus expenditures to its Korean and overseas branches, which come as a commemoration of the 20 year mark since the start of Chairman Lee Kun-hee's "New Management" strategy to put the company at the top of the global electronics market.
Lee took over the TV set company in 1987 from his father (the founder) and in 1993 set out to achieve global technology dominance.
As Reuters report, it's a common practice among Korean companies to pay lower salaries and add various bonuses, depending on the unit performance.
In the past two weeks the company shares have taken a 10% dip, accounting for an estimated value loss of around $19 billion.
The company has announced that we should expect the finalized fourth quarter report on January 24, 2014.
from GSMArena.com - Latest articles http://www.gsmarena.com/samsung_post_q4_2013_earnings_estimate-news-7504.php
via IFTTT
0 comments:
Post a Comment