Samsung Electronics has warned that its fourth quarter 2023 operating profit is likely to be 35% lower than expected and miss the forecasts of analysts who track the company’s progress.
Specifically, Samsung said that its Q4 operating profit is likely to be 2.8 trillion South Korean won ($2.13 billion U.S.), down 35% from the same period a year ago when the firm reported an operating profit of 4.31 trillion won.
The new profit guidance is well below the consensus estimate of 3.7 trillion won among industry analysts who cover Samsung.
The South Korean electronics giant also said that its Q4 revenue likely fell 4.9% from the same period a year ago to 67 trillion won.
Samsung is the world’s largest maker of dynamic random-access memory chips that are used in consumer devices such as smartphones and computers.
Memory chip prices fell sharply last year due to excess inventories and weak demand for products such as smartphones and laptop computers.
The price decline has hurt Samsung’s earnings over the past year. The company’s Q3 operating profit was down 78% from a year earlier, while its operating profit in Q2 was down 95% year-over-year.
The company is scheduled to announce its full Q4 earnings report on Jan. 31.
Based in South Korea, Samsung’s stock trades only in Asia. Its share price is up 24% over the last 12 months, though it has declined 5% since the start of 2024.