Samsung Shares Slide As Much As 2% On Bleak Q3 Profit View: Here's Its Sales Forecast

Samsung Electronics Co Ltd SSLNF has reported its earnings guidance for the third quarter, with the consolidated 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, reported Bloomberg. Consolidated sales are estimated at approximately 76 trillion won, slightly higher than the 73.98 trillion won registered a year earlier.

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Estimates: Analysts had estimated the operating profit to hit 12.1 trillion won on average while sales were estimated at 76 trillion won, the report said. Samsung will announce its net income and details of divisional performance with its full report at the end of this month.

Samsung shares dropped as much as 2% in Seoul on Friday following the announcement.

Warnings: Memory chipmakers around the world have been warning they are facing a difficult market at a time inventories are rising and orders are being trimmed by data centers as well as consumer tech clients following weakening demand for PCs and smartphones, as per the report.

Micron Technology, Inc. MU and Kioxia Holdings Corp. are reducing their output to try and 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 lowered its third-quarter sales guidance below analyst estimates. AMD sees preliminary third-quarter revenue of approximately $5.6 billion, lower than a prior outlook of $6.7 billion plus or minus $200 million, primarily due to weaker client segment revenue.

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