Samsung Electronics (OTCPK:SSNLF) said it estimates a 77.9% decline in Q3 operating profit, as its semiconductor business is still battling to recover from an industrywide downturn, although analysts believe memory chip prices may have bottomed.
The South Korean electronics giant expects to report operational profit for the July–September quarter of KRW 2.4T ($1.79B), down from KRW 10.85T for the year-ago period, but higher than Q2’s KRW 0.67B. Samsung’s (OTCPK:SSNLF) revenue is expected to fall 12.7% Y/Y to KRW 67T ($49.91B).
Even so, Samsung Electronics’ shares on the South Korean exchange rose 3%. “It’s better than expected,” said Ko Yeongmin, a Daol Investment & Securities analyst, told Reuters. “Although the situation is not great in the chip business… the decline in memory prices is easing.”
Memory chip prices had declined significantly this year due to a glut brought on by poor demand for final goods like smartphones and laptops.
Samsung’s detailed earnings report will be released on October 31.