Samsung, LG unveil Q4 earnings estimates
Earnings forecast are out... which means progress report time for Korea's two biggest tech companies, as well.
released their earnings guidance for last year's fourth quarter.
While Samsung Electronics celebrates a better than expected result,... LG saw a three-month period in the red.
Kim Min-ji breaks down the contrasting digits for us.
It's the best report card in more than two years for Korean tech giant Samsung Electronics.
The company is estimated to have posted an operating profit of nine-point-two trillion won,... or roughly seven-point-eight billion U.S. dollars, in the fourth quarter of last year.
That's up almost 50 percent from the same period in 2015.
Sales came to about 45 billion dollars,... down zero-point-six percent on-year. The forecast on operating profit beats a market consensus by almost a billion dollars... and is the first time to top the nine trillion won mark since the third quarter of 2013.
It's also a significant turnaround from the four-point-three billion dollars it posted in the third quarter -- which reflected losses from the ill-fated Galaxy Note 7 smartphone. "This time it's mostly semiconductor play. More than half the profit is coming from the semiconductor division. But that's also propelled by the smartphone market.
You can see the feature sets in smartphones is getting richer and more improved. So the required memory content has to increase, so that's boosting the memory division. But Samsung's mobile division isn't enjoying the extra boost they used to have in the Q4 because they don't have the Note 7."
For local rival LG Electronics, however, it wasn't such a rosy picture -- with its operating income turning to the red.
The company is estimated to have posted an operating loss of almost 30 million dollars in the fourth quarter of last year.
That compares with a profit of 292 million dollars for the same period in 2015.
Sales are expected to come in at 12-point-3 billion -- up one-and-a-half percent from a year ago. "It seems LG's smartphone division appears to have posted a greater loss in the fourth quarter,... as its flagship model wasn't the best seller. On top of that, it has been streamlining its mobile business,... and the costs from that will likely be reflected in the fourth quarter."
On top of that, rising panel prices and seasonal factors, are expected to have also hurt profits of LG's traditional cash cows -- like its home appliances and home entertainment sectors.
The two companies will release their final earnings reports -- with a breakdown of performance by unit -- later this month.