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Samsung Q4 earnings may beat market forecasts, shares skyrocket
Despite the Note 7 fiasco, Samsung is expected to report record-high, forecast-beating Q4 earnings, and its shares are at an all-time high. Indeed, this may be the highest profits the company has ever recorded in the past three years, thanks to its chip business.
Just a week ago, we reported that quite a few financial analysts in South Korea are expecting that Samsung will post its highest profits in the past three years for Q4 of 2016. Samsung failed to impress last quarter given the Galaxy Note 7 fiasco – which was eventually recalled. However, it seems it hasn’t taken too long for the South Korean electronics giant to bounce back. Initially, IBK Securities and HMC Investment Securities projected an operating profit of 8.7 trillion won from Samsung, with two other firms predicting a slightly lower figure.
Either way, that’s considerably higher than the initial projected figure of 7.91 trillion won by an industry tracker FnGuide. Although the exact number is expected to be revealed this Friday or next Monday at the latest according to The Investor, the projected figure of 8.5 to 8.7 trillion won means a 68 percent increase from the previous quarter.
The projected figure of 8.5 to 8.7 trillion won means a 68 percent increase from the previous quarter.
Amidst reports pointing to Samsung’s record Q4 earnings, its shares have also hit an all-time high of 1,831,000 won or around $1,500. Kyobo Securities forecasts that Samsung will generate a record high operating income for 2016, at around 38.6 trillion won. Although the company had no new flagship device to offer during the second half of last year, Galaxy S7 sales have been robust. However, more importantly, Samsung’s focus on semiconductors and displays has finally paid off, it looks like.
With the recently announced partnership between the company and Qualcomm as well as the rising demand for OLED panels, it looks like the Note 7’s shameful history won’t make such a permanent dent, at least not financially.