samsung electronics co ltd SSLNF has reported its earnings guidance for the third quarterwith consolidated operating profit expected to fall nearly 32% to 10.8 trillion won compared to the same period last year.
This is the first profit decline the company has reported since 2019. reported Bloomberg. Consolidated sales are estimated at about 76 trillion won, slightly higher than the 73.98 trillion won registered a year earlier.
Also read: How to buy Samsung shares
Estimates: Analysts had estimated operating profit at an average of 12.1 trillion won while revenue was estimated at 76 trillion won, the report said. Samsung will announce its net income and divisional performance details with its full report later this month.
Samsung shares fell as much as 2% on Friday following the announcement in Seoul.
Warnings: Memory chip makers around the world have warned they are facing a tough market as inventories rise and orders from data centers and consumer technology customers are cut due to weakening demand for PCs and smartphones, the report said.
Micron Technology, Inc. mu and Kioxia Holdings Corp. are cutting production to try to rebalance supply and avoid a price crash, the report added.
Advanced Micro Devices, Inc. AMD Shares fell as much as 5.47% to $64.12 during Thursday’s after-hours session after the company cut its third-quarter revenue forecast below analysts’ estimates. AMD expects preliminary third-quarter revenue of about $5.6 billion, down from a previous guidance of $6.7 billion plus or minus $200 million, primarily due to weaker consumer segment revenue.
Continue reading: Biden’s CHIPS Act Gains Momentum; IBM plans $20 billion in the Hudson Valley region over the decade
