Samsung Electronics on Friday forecast solid fourth-quarter earnings at $8.2 billion as its cash cow chip business apparently stayed afloat in the face of the weakness of the US dollar and the resurgence of novel coronavirus infections to cover mediocre performance in its mobile business.
In its earnings guidance, the South Korean tech giant estimated its operating profit at 9 trillion won ($8.2 billion) for the October-December period in 2020, up 25.7 per cent from a year ago.
The fourth-quarter operating income estimate was lower than the market consensus of 9.3 trillion won in the data compiled by Yonhap Infomax, the financial arm of Yonhap News Agency.
Samsung projected its fourth-quarter sales at 61 trillion won in the three-month period, up 1.87 per cent from a year earlier. The figure is in line with the market forecast
On a quarter-on-quarter basis, Samsung's fourth-quarter estimate was down from its superb performance in the third quarter, when it racked up record sales of 66.9 trillion won and operating profit of 12.3 trillion won on the back of pent-up demand.
For the whole of 2020, Samsung expected its operating profit to reach 35.95 trillion won, up 29.4 per cent from a year earlier, with its sales to climb 2.54 per cent on-year to 236.26 trillion won.