Samsung Electronics Co Ltd

005930: XKRX (KOR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	₩53,393.00	Bcnbnj	Pccfqjn

Samsung Electronics: Despite Disappointing Guidance, We Remain Optimistic on Memory Price Recovery

Kazunori Ito

Jan 10, 2024

Samsung Electronics guided December-quarter revenue of KRW 67 trillion, down 4.9% year over year, and operating income of KRW 2.8 trillion or 4.2% operating margin, up from KRW 2.4 trillion or 3.6% operating margin in the September quarter. This was below our expectation of KRW 3.7 trillion or 5.4% operating margin. Although the firm doesn't disclose the segment breakdown, we believe that the shortfall is due to the lower profitability of nonmemory businesses, such as smartphones and foundries, while we believe the memory business has bottomed out and is on the road to recovery.

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