Despite Note7 fiasco, Samsung expects strong quarterly results in Q3 2016

Samsung has been the center of attraction in the media for the past few weeks due to the "exploding" Note7 fiasco. A couple of weeks ago, the company issued a worldwide recall for the handset - which analysts predicted could result in a loss of around $700 million. The Korean tech giant has now posted its earning guidance for Q3 2016, and despite losses, the company still expects to make a lot of money.

According to Samsung, it expects to make approximately 49 trillion Korean won (~$44 billion) in consolidated sales in Q3 2016, which is only slightly less than the 50.94 trillion (~$45.5 billion) and 51.68 trillion (~$46.5 billion) Korean won that it made in Q2 2016 and Q3 2015. While this is still a YoY loss, the company expects to make more money in terms of consolidated operating profit.

Last year, the company managed 7.39 trillion Korean won (~$6.6 billion) for the same quarter in consolidated operating profit. This year, it expects to make 7.8 trillion Korean won (~$7 billion), which is a 5.5% YoY increase. However, it is important to note that this is still marginally lesser than the 8.14 trillion Korean won (~$7.3 billion) that the company achieved in the previous quarter.

While Samsung obviously expects some losses in Q3 2016 due to the Note7 recall process, it still expects to post strong financial results. Although it hasn't officially broken down the statistics presented in its earnings guidance, analysts state that the company possibly expects strong quarterly results due to its component manufacturing division and the decent sales of its Galaxy S7 handset.

Report a problem with article
Next Article

Pixel sells its soul; Verizon models will need carrier approval for software updates

Previous Article

Nvidia release 'Game Ready' 373.06 WHQL drivers for Gears of War 4 and Mafia III

6 Comments - Add comment