7/5/2013 3:44:17 PM
Samsung forecasts record Q2 results but disappoints analysts' expectations
Samsung’s forecast of its Q2 results has disappointed analysts’ expectations, raising fears that demand for high end smartphones is declining.
Despite Samsung forecasting a record £5.4bn operating profit for the second quarter this year the manufacturer failed to live up to analysts’ earlier predictions of an operating profit of £5.9bn on sales of £34bn.
Samsung shares fell 3% after the forecast. The news follows reports that Samsung’s Galaxy S4 is not selling as strongly as expected which has seen several brokers downgrading Samsung and their earnings forecasts for the company.
Some commentators said Samsung is suffering from being too successful, pointing out the manufacturer’s estimate for second-quarter operating profit represents a 47% increase from the actual figure of £3.8bn a year earlier.
The forecast marks an 8.2% rise from the previous quarter, when Samsung posted an operating profit of £5.1bn.