Real Money Stock of the Day Samsung Electronics (SSNLF) said Friday that its first-quarter profit likely would miss expectations, setting up the world's biggest smartphone maker for the weakest bottom line since 2016 and the steepest decline in four years.
Samsung repeated the concerns it unveiled late last month in a rare pre-earnings update that weaker-than-expected business conditions in two of its key markets - memory chips and panel displays - likely would mean first-quarter profit will fall short of analysts' forecasts.
Samsung said it now sees sales of 52 trillion Korean won ($45.7 billion), down 13% from the same period last year and shy of the previous 53.7 trillion Korean won consensus. Samsung also said earnings will slump to 6.2 trillion Korean won, well below the 7.2 trillion estimate, and down 60% from the same period last year.
"To overcome difficult business conditions, the company will strengthen product differentiation based on its technological leadership while also enhancing cost competitiveness via efficient resource management," Samsung said in statement filed to stock exchange regulators late last month. "In the mid to long term, we will continue efforts to strengthen key capabilities by boosting competitiveness of our major businesses while securing sustained growth via strategic investments in R&D, new businesses, etc."