Samsung Electronics' third-quarter operating profit likely 32% to drop

Samsung Electronics' third-quarter operating profit likely 32% to drop

Samsung Electronics Co Ltd SSLNF reported its earnings guidance for the third quarter, with the operating profit likely to drop nearly 32% to 10.8 trillion won compared to the same period last year.

This is the first profit drop reported by the company since 2019, according to Bloomberg. The forecast for sales is estimated at 76 trillion won, up from the previous year's 73.98 trillion won.

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The operating profit was estimated to hit 12.1 trillion won on average, while sales were estimated to be 76 trillion won, according to the report. The full report will reveal the company's net income and details of divisional performance at the end of the month.

The shares of Samsung dropped by as much as 2% in Seoul on Friday.

Memory chipmakers have warned that they are facing a difficult market at a time when inventories are rising and orders are trimmed by data centers and consumer tech clients because of weaker demand for PCs and phones, as per the report.

Micron Technology, Inc. MU and Kioxia Holdings Corp. are reducing their output to try and balance supply to avoid a price crash, according to the report.

AMD shares fell by as much as 5.47% to $64.12 during Thursday's after-hours session, after the company lowered its third-quarter sales guidance below analyst estimates. AMD sees preliminary third-quarter revenue of approximately $5.6 billion, lower than the previous outlook of $6.7 billion plus or minus $200 million, due to weaker client segment revenue.