With the cancelation of Samsung's Galaxy Note7 handset, the Korean company has revised its previous earnings forecast for Q3 2016. Additionally, its shares took a blow as well, with a fall of 0.8% ahead of this revision, which adds to the 8% fall from Tuesday. This has resulted in a loss of almost $20 billion to the company.
Samsung now expects to make approximately 47 trillion Korean won (~$42 billion) in consolidated sales compared to the 49 trillion Korean won (~$44 billion) it forecasted earlier. This is considerably lesser 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.
Additionally, the company expects a hit to consolidated operating profits as well, which it now predicts at approximately 5.2 trillion Korean won (~$4.6 billion). This is now a considerably YoY decrease considering that the company expected to make 7.8 trillion Korean won (~$6.6 billion) previously, which was actually a 5.5% YoY increase.
Samsung's share prices have fallen as well. On Tuesday, the company's shares fell by 8%, and with the cancelation of the Note7, these have fallen by yet another 0.65% ahead of this earning report's revision. Overall, this is a lost of almost $20 billion in market value in two days.
It is important to note (no pun intended) that with the Note7 now discontinued, Samsung is urging the handset's owners to immediately return the device in exchange for a full refund or a variant of the Galaxy S7. In fact, it is also issuing fireproof kits to Note7 owners for the safe return of the device.