An­a­lysts cut out­looks for Sam­sung, SK hynix

The Korea Times - - FINANCE - By Jhoo Dong-chan [email protected]­re­atimes.co.kr

Mar­ket an­a­lysts have low­ered listed firms’ earn­ings fore­casts for the first quar­ter re­flect­ing their dis­ap­point­ing sales in the fourth quar­ter of 2018.

The down­grade is at­trib­uted to pos­si­ble af­ter­ef­fects from the on­go­ing trade dis­pute be­tween the U.S. and China, and fol­low­ing a de­cline in global trade vol­ume.

Of the na­tion’s 135 listed firms with a reg­u­lar quar­terly out­look re­leased by more than three do­mes­tic bro­ker­ages, the first-quar­ter earn­ings out­look for 77 were re­cently low­ered, mar­ket re­searcher FnGuide said Thurs­day.

Sam­sung Elec­tron­ics, which posted record high earn­ings twice last year, posted a dis­ap­point­ing op­er­at­ing profit of 10.8 tril­lion won ($9.65 bil­lion) in the fourth quar­ter.

In De­cem­ber, do­mes­tic bro­ker­ages fore­cast the world’s largest chip­maker would post a 14.42 tril­lion won op­er­at­ing profit dur­ing the Jan­uary-March pe­riod, but sharply low­ered their out­look this month due to its earn­ing shock.

Re­flect­ing its dis­ap­point­ing earn­ings last quar­ter, Sam­sung is now fore­cast to achieve an 11.64 tril­lion won op­er­at­ing profit in the first quar­ter, down 25.3 per­cent from its earn­ings in the first quar­ter of last year.

The com­pany posted a 15.64 tril­lion won op­er­at­ing profit in the first quar­ter of last year.

Se­cu­ri­ties firms also low­ered their earn­ings out­look for SK hynix in the first quar­ter. They had fore­cast the chip­maker would post 4.71 tril­lion in op­er­at­ing profit, but re­cently cut their prog­no­sis to 3.74 tril­lion won.

The fig­ure is also down 14.4 per­cent from the firm’s op­er­at­ing profit of 4.36 tril­lion in the first quar­ter of last year.

“The in­dus­try peaked dur­ing the third quar­ter of 2018 and al­ready passed its su­per-cy­cle pe­riod,” said Meritz Se­cu­ri­ties an­a­lyst Kim Sun-woo.

The na­tion’s re­fin­ers are also ex­pected to post dis­ap­point­ing earn­ings in the first quar­ter due to fall­ing oil prices.

SK In­no­va­tion is fore­cast to earn an op­er­at­ing profit of 616.6 bil­lion won, down 20.7 per­cent from its pre­vi­ous out­look re­leased last month.

The re­finer posted a 4.36 tril­lion won op­er­at­ing profit in the first quar­ter of last year, but de­te­ri­o­rat­ing re­fin­ing mar­gins along with the down­trend in oil prices dragged down the quar­terly earn­ings fore­cast.

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