4Q 2022 Pre-Earnings GuidanceSource: RNS
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD), on January 6, 2023, announced its earnings guidance for the fourth quarter of 2022.
∙ Consolidated sales: Approximately 70 trillion Korean won
∙ Consolidated operating profit: Approximately 4.3 trillion Korean won
The above estimates are based on K-IFRS. Please note that Korean disclosure regulations do not allow earnings estimates to be offered as a range. To comply with such regulations, the above figures represent the median of the estimate ranges provided below.
∙ Sales: 69 trillion to 71 trillion Korean won
∙ Operating profit: 4.2 trillion to 4.4 trillion Korean won
※ The above information is provided for the convenience of our investors before the external audit on the financial results of our headquarters, subsidiaries and affiliates is completed. The statements contained herein include statements of future expectations and other forward-looking statements that are based on management's current views, expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Samsung Electronics Co., Ltd's ("SEC") core businesses and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events, (iii) currency exchange rates, (iv) changing levels of competition, (v) changes in laws and regulations, (vi) general competitive factors, in each case on a local, regional, national and/or global basis. The matters discussed herein may also be affected by risks and uncertainties described from time to time in SEC's filings with the Korea Stock Exchange (KRX), FSS (Korea), and Samsung Website. Further information about risks and uncertainties affecting Samsung Electronics Co., Ltd. is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on https://www.samsung.com/global/ir. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of SEC may vary materially from those described in the relevant forward-looking statement, and all such statements are subject to certain risks and uncertainties that could cause our actual results to be materially different from those expressed herein. The company assumes no obligation to update any forward-looking statement.
「SEC 4Q22 Pre-Earnings Guidance」 Reference Material
As preliminary results for 4Q22 are well below current market expectations, this document is to offer reasons behind the shortfall to minimize market confusion and increase investor understanding prior to our earnings conference call on January 31.
□ Amid continued external uncertainties, including a potential global economic downturn, overall earnings decreased sharply Q/Q as we saw a significant drop in the memory business results mainly due to lackluster demand and also weaker sales of smartphones.
- For the memory business, the decline in 4Q demand was greater than expected as customers adjusted inventories in their effort to further tighten finances, spurred by concerns over deteriorating consumer sentiment caused by continued high global interest rates and weak economic outlooks.
Moreover, increased inventory at memory suppliers added pressure to reduce inventory levels, which led to continued memory price declines throughout the quarter, and a greater-than-expected drop in ASP.
- Profits from the MX Business declined as smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues.
- Profitability in the Digital Appliance Business deteriorated due to continued sluggish market demand and cost burdens.