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Samsung fourth-quarter benefit misses estimates, falls sharply from earlier quarter as prices upward push

Samsung fourth-quarter benefit misses estimates, falls sharply from earlier quarter as prices upward push
January 31, 2025



Shoppers store at a Samsung cell retailer within a shopping center in New Delhi.Reuters | Anindito MukherjeeSamsung Electronics on Friday reported better-than-expected fourth-quarter earnings, although its running benefit dropped sharply from the former quarter because of upper R&D bills in its chips phase.Listed here are Samsung’s fourth-quarter effects when compared with LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra constantly correct:Income: 75.8 trillion Korean gained ($52.2 billion) vs. KRW 75.4 trillionOperating benefit: KRW 6.5 trillion vs. KRW 6.8 trillionRevenue was once about 12% up from the similar duration from closing yr, whilst running benefit grew about 130%, yr on yr.Alternatively, running benefit fell just about 30% to six.5 trillion gained.Samsung stocks fell 2.2% in South Korea on Friday morning.Fourth-quarter earnings beat Samsung’s personal steerage of KRW 75 trillion, whilst running benefit got here consistent with the corporate’s forecast.Samsung is a number one producer of reminiscence chips, which can be used in units similar to laptops and servers, and may be the sector’s second-largest participant within the smartphone marketplace.”Even supposing fourth quarter earnings and running benefit diminished on a quarter-on-quarter (QoQ) foundation, annual earnings reached the second-highest on list, surpassed most effective in 2022,” Samsung stated in its observation.For the overall yr, Samsung reported KRW 300.9 trillion in earnings and KRW 32.7 trillion in running benefit. In 2023, the corporate posted an annual earnings of KRW 258.94 trillion and an running benefit of KRW 6.57 trillion.For the present quarter, Samsung stated that income could be restricted because of weak spot in its semiconductor trade however that it could pursue enlargement via AI smartphones and different top class units. “For 2025 as a complete, the Corporate plans to beef up technological and product benefits in AI, proceed to satisfy long term call for for high-value-added merchandise and force gross sales enlargement in top class segments,” it added.Reminiscence businessSamsung Electronics’ chip trade posted an running benefit of KRW 2.9 trillion within the fourth quarter, down over 25% from the 3 months finishing in October, whilst its annual numbers got here in underneath that of SK Hynix.This was once in spite of Samsung’s reminiscence trade reaching a record-high fourth-quarter earnings of 30.1 trillion helped by means of call for for its complex reminiscence merchandise used for AI packages. “[O]perating benefit diminished quite in comparison to the former quarter on account of larger R&D bills to protected long term era management, in addition to the preliminary ramp-up prices to protected manufacturing capability for state-of-the-art nodes,” Samsung stated. Samsung and SK Hynix each supply DRAM, or dynamic random get right of entry to reminiscence, merchandise — one of those semiconductor reminiscence wanted for information processing. Alternatively, SK Hynix has left Samsung at the back of in HBM, or excessive bandwidth reminiscence, one of those DRAM, during which chips are vertically stacked to save lots of house and scale back energy intake. In keeping with Samsung, its reminiscence trade is reducing down legacy merchandise to higher align with marketplace call for and extending its share of excessive value-added merchandise, similar to HBM. “In 2025, general reminiscence marketplace call for is predicted to get well from the second one quarter,” Samsung stated, caution that its income are anticipated to stay susceptible within the present quarter.  

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