NEW YORK (TheStreet) -- Samsung Electronics estimated that its second-quarter operating profit will fall 24% from last year, but its new smartphone line-up should lead to an improved outlook for the third quarter.
Samsung Electronics warned that its second-quarter operating profit likely will miss analyst expectations but the electronics giant issued an optimistic outlook for the third quarter.
Samsung said it estimates its operating profit at 7.2 trillion won, or $7.1 billion, in the quarter, a 24% year-over-year drop. That's below analyst expectations for an operating profit of 8.3 trillion won, according to Reuters, and marks its third straight quarter of declines. Samsung attributed the results to slower growth in the smartphone market and increased competition in China and Europe, all of which led to higher inventories for medium- and low-end smartphones. Earnings were also weighed down by the appreciation of the Korean won against other currencies.
But looking ahead, Samsung said its new smartphone line-up and lower marketing expenditures should lead to a more positive outlook in the third quarter. The company's full quarterly results are expected later this month.
In New York, I'm Brittany Umar reporting for TheStreet.
-- Written by Brittany Umar in New York.