Samsung misses earnings expectations despite 277% surge

Samsung Electronics posted weaker-than-expected earnings of 9.18 trillion won ($6.65 billion) for the July-September period, citing one-off costs such as incentive distributions, the Korean chip giant said on Thursday.

Samsung Electronics' office building in Seocho District, southern Seoul [NEWS1]

Samsung Electronics posted weaker-than-expected operating profit of 9.18 trillion won ($6.65 billion) for the July-September period, citing one-off costs such as incentive distributions, the Korean tech giant said on Thursday.

The figure marked a 277.4 percent on-year increase but fell short of the market consensus of 10.8 trillion won, compiled by market tracker FnGuide, though it aligned with Samsung’s projections earlier this month. Revenue reached a record-high quarterly figure of 79.1 trillion won, reflecting a 17.35 percent on-year surge. However, this result was slightly below market expectations of 80.9 trillion won.

Net profit rose 72.84 percent to 10.2 trillion won, exceeding analysts’ projection of 9.18 trillion won.

By business segment, the device solutions (DS) division, responsible for semiconductors, reported an operating profit of 3.86 trillion won and revenue of 29.27 trillion won.

“The decrease in profit was due to a reduction in inventory valuation gains compared to the previous quarter, one-time costs such as incentive provisions and exchange rate impacts from a weaker dollar,” Samsung explained in a statement.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]