Samsung posts record profit for Q2 and still analysts grumble
There is no pleasing some people. Samsung has released a preliminary estimate of its second quarter financial results, showing its operating profit for the period to be between 9.3 trillion won (£5.42 billion) and 9.7 trillion won (£5.65 billion). This is a record amount for the company, representing an 8 per cent rise over the previous quarter and 47 per cent rise year-on-year.
However, it still falls short of analysts' expectations. A Bloomberg analyst survey put prior expectations at 10 trillion won (£5.83 billion). The announcement, therefore, saw Samsung's shares drop in value in South Korea, by 3.8 per cent.
Unfortunately for the company, while the financial results are in line with Samsung's own previous forecasts, analysts chose to be more enthusiastic in their expectations. "The company has tried to lower expectations, but still people are used to positive earnings surprises from Samsung," Daniel Kim, an analyst at Macquarie, told the Financial Times. "Including myself... the investment community believed the company's management had a conservative bias [in its forecasts]."
So by analysts taking that stance, what looked to be a fantastic quarter for Samsung has been seen as disappointing, even though sales of the Samsung Galaxy S4 have surpassed those of the company's previous handsets and the company is posting record profits.
Still, it is doing a darn sight better than major rival HTC, which launched its flagship handset the HTC One at roughly the same time Samsung did the SGS4. Its revenues for June were down 26.43 per cent year-on-year, despite critical acclaim for its latest phone.