A Samsung Electronics Co. corporate flag flies outside the company’s Seocho office building in Seoul, South Korea, on Wednesday, Feb. 7, 2018.
Jean Chung | Bloomberg | Getty Images
In a challenging environment for chipmakers, Samsung Electronics on Thursday said its operating profit for the three months ending in September fell 56% versus the same period a year ago.
But that number ticked up almost 18% from the previous quarter. It also beat guidance the company provided earlier this month.
Analysts say there could be a slow recovery in the semiconductor space, where chipmakers have struggled due to low prices and demand for memory chips.
Here’s what the company reported versus what it had reported a year ago:
- Operating profit: 7.78 trillion Korean won ($6.7 billion) vs. 17.57 trillion won a year ago
- Net profit: 6.29 trillion Korean won vs. 13.15 trillion won a year ago
- Consolidated sales: 62 trillion Korean won vs. 65.46 trillion won a year ago
- Basic earnings per share was 899 Korean won compared to 1,909 won from a year ago.
For the fourth quarter, Samsung said it expects “demand for components to turn sluggish in general amid weak seasonal effects, while marketing expenses are likely to increase to address year-end smartphone sales.”
Memory components used in smartphones and data centers make up Samsung’s main profit-making business.
Samsung said continued weakness in the memory chip market weighed on stronger smartphone sales and improved utilization in mobile OLED screens in the third quarter. Organic light-emitting diode, or OLED, is a type of screen that provides sharper displays.
Samsung shares rose 1.39% in early trade.
