Samsung Expects Four-Fold Increase in Third-Quarter Operating Profit

By Kwanwoo Jun

Samsung Electronics forecast a near four-fold increase in third-quarter operating profit, a slower pace of growth than the nearly 16-fold surge seen the previous quarter.

The world's largest maker of memory chips and smartphones said it expects operating profit of 9.100 trillion won, equivalent to $6.76 billion, compared with 2.430 trillion won a year earlier.

The estimate missed a FactSet-compiled consensus forecast of 11.146 trillion won.

Quarterly revenue likely rose 17% to 79.000 trillion won, Samsung said Tuesday, missing a FactSet-compiled estimate. The company attributed the below-consensus quarterly earnings results partly to one-off costs for its incentive payments to employees.

Inventory adjustments at some client smartphone makers and China's increased legacy chip supply also weighed on the quarterly results, the company said.

Samsung didn't provide further details as it is set to release full quarterly results later this month.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

October 07, 2024 20:34 ET (00:34 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.