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Samsung Electronics Co., Ltd. (SSNLF)

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  • Wed, Jan. 28, 8:20 PM
    • Samsung (OTC:SSNLF) had Q4 revenue of KRW52.73T ($48.6B, -11% Y/Y) and operating profit of KRW5.29T ($4.9B, -36%); the latter was slightly above guidance of KRW5.2T. Net profit fell 28% to KRW5.35T.
    • With competition from Apple and Chinese OEMs taking a toll, mobile revenue fell 23% to KRW25T. On the other hand, strong DRAM demand/pricing and NAND growth led memory sales to rise 25% to KRW8.18T. Growing TV panel and mobile OLED panel demand helped display sales rise 9% to KRW7.05T. Consumer electronics sales were flat at KRW14.3T.
    • Smartphone/tablet and TV sales are expected to fall in Q1 due to seasonality. TV sales for the whole of 2015 are expected to rise, aided by strong 4K TV demand. Tablet sales are also expected to grow, but no similar forecast is made for phones.
    • Mobile and server DRAM demand is expected to remain strong in 2015, with the former boosted by the adoption of high-res phone displays. NAND flash sales are expected to benefit from server/SSD demand, and LSI (logic/foundry) sales by the 14nm process ramp.
    • OLED panel shipments are expected to rise in seasonally weak Q1 due to new products (the Galaxy S6?), and grow over the whole of 2015 via the expansion of Samsung's customer base - Universal Display (NASDAQ:OLED) should be pleased to hear that. A healthy supply/demand balance is expected to remain for LCD panels.
    • Samsung ended Q4 with over KRW50T ($46B) in net cash, and KRW17.9T ($16.4B) in investments. Shares are up 0.9% in Seoul.
    • Q4 earnings slides (.pdf)
  • Thu, Jan. 8, 2:11 AM
    • Confirming its first year of annual profit decline since 2011, Samsung Electronics (OTC:SSNLF) announced today that its fourth-quarter profit likely fell 37.4% Y/Y, hurt by falling sales at its smartphone division.
    • Earlier this week, Samsung pledged to reinvent itself by focusing on the "Internet of things", and promised that all of its devices would soon be connected to the Internet.
  • Dec. 11, 2014, 1:54 PM
    • Thanks to Apple's huge A8 CPU orders, TSMC (TSM +0.6%) had November revenue of $2.32B, -10.5% M/M (seasonality) but +64.1% Y/Y. October sales were up 55.9% Y/Y.
    • Sources tell Digitimes sales are also expected to fall M/M in December, but add TSMC is still set to hit Q4 revenue guidance of NT$117B-$120B ($3.74B-$3.84B).
    • Meanwhile, Samsung (OTC:SSNLF) has begun producing chips using its next-gen 14nm FinFET process for an unnamed client (quite possibly Apple), a little earlier than expected. The process is expected to be used to make Apple's A9 CPU (going into 2015 iDevices), as well as upcoming Qualcomm processors.
    • TSMC might also be responsible for some A9 output, via its 16nm FinFET process (set to enter mass-production in Q2 2015).
  • Oct. 30, 2014, 6:37 AM
    • Samsung Electronics (OTC:SSNLF, OTC:SSNGY) reports that its net profit nearly halved during Q3, as its mobile business continued to face heavy competition from low-cost Chinese smartphone makers.
    • Net profit during the quarter ended in September fell 49% Y/Y to 4.2T won ($4B). That followed a 20% profit decline in the previous quarter.
    • Samsung also warned that uncertainty remains for its mobile business in the current quarter, since it will have to boost its marketing efforts to counter an anticipated year-end surge in competitors’ smartphone launches.
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  • Oct. 6, 2014, 8:01 PM
    • Samsung (OTC:SSNLF, OTC:SSNGY) expects to report a Q3 op. profit of KRW4.1T ($3.8B), down 60% Y/Y and well below a KRW5.6T consensus. Revenue is expected to total KRW47T ($44B), down 20.5% Y/Y and below a KWT50.9T consensus.
    • The Korean electronics giant blames weak mobile sales and a declining smartphone ASP. With its efforts to differentiate via proprietary software/services running on top of Google's Android often falling flat, Samsung has been losing share to Chinese OEMs offering aggressively-priced low-end and mid-range devices. More recently, it has also had to deal with the iPhone 6/6 Plus launch.
    • The Q3 warning comes on the heels of July's soft Q2 numbers.
  • Jul. 7, 2014, 11:43 PM
    • Samsung (SSNLF, SSNGY) expects to report Q2 revenue of KRW51T-53T ($50.4B-$52.4B), and an op. profit of KRW7T-7.4T ($6.9B-$7.3B). Those guidance ranges are below Bloomberg consensus estimates of KRW53.2T and KRW8.1T.
    • The electronics giant blames "mid-to-low end" phone competition in China and Europe, a strong won, and higher marketing spend aimed at lowering phone inventories.
    • Also, tablet shipments fell more than expected due to a weak market, and mobile weakness had a spillover effect on internal display and chip sales.
    • Samsung is facing intensifying low-end/mid-range smartphone competition from Chinese OEMs pricing aggressively - its smartphone share fell Y/Y in both Q1 and Q4 (per IDC) following a long run of share gains, while Huawei and Lenovo each grew rapidly. Xiaomi, which shipped 26.1M phones in 1H14 (+271% Y/Y), is also a growing threat.
    • The tablet weakness comes after the market's growth slowed to a trickle in Q1. Notably, Samsung states phablets are cannibalizing 7"-8" tablets, and a lack of carrier subsidies is leading to low upgrade rates (previous).
    • Samsung is "cautiously" optimistic about Q3. It expects hardware refreshes to boost smartphone sales, and for display and memory chip sales to also rise.
    • Shares are up 0.5% in Seoul. Investors have been expecting soft Q2 numbers.
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  • Jun. 25, 2014, 7:32 AM
    • Execs at Samsung (SSNLF) are not expecting great results this quarter, after announcing that company performance has been declining. Shares have fallen 8.5% so far this month, after a string of downgrades in earnings forecasts.
    • “It doesn’t look too good,” says CFO Lee Sang-hoon, in reference to second quarter results.
    • The company is scheduled to report its second-quarter earnings estimates in early July.
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  • Apr. 29, 2014, 2:32 AM
    • Samsung's (SSNLF) Q1 operating profit fell 3.3% to 8.49T Korean won ($8.2B) but topped consensus of 8.4T won.
    • Net profit excluding minority interests grew 7.3% to 7.48T won ($7.2B) and beat forecasts of 6.75T won, while revenues increased 3% to 53.68T won.
    • Operating profit at Samsung's mobile division fell 1.2% to 6.43T won ($6.2B) but surpassed expectations of 5.9T won, with the company shipping 113M phones and tablets. Margins were unchanged at 19.8%.
    • Operating earnings breakdown at other units: chip business almost doubled to 1.95T won from 1.07T won; display swung to a loss of 80B won from a profit of 770B won, hurt by increased costs for a production ramp-up and falling selling prices; TV and home-appliances 190B won.
    • Samsung forecasts that profits will rally in Q2 and beyond, lifted by strong sales of its new Galaxy S5 flagship device - which are expected to outstrip those of the S4 - as well as "improved sales of display panels and home appliances." (PR)
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  • Apr. 8, 2014, 3:24 AM
    • Samsung's (SSNLF) Q1 operating profit fell for the second quarter in a row in Q1, dropping a preliminary 4.3% to 8.4T won ($7.96B) and vs consensus of 8.5T won.
    • Sales rose slightly to 53T won from 52.87T won and vs expectations of 54.58T won.
    • Samsung released its Q1 estimates ahead of the global launch of the Galaxy S5 on Friday amid criticism that the device doesn't have any overly interesting new features.
    • Shares fell 0.2% in Seoul. (PR)
    | 1 Comment
  • Jan. 24, 2014, 2:08 PM
    • Chip equipment stocks aren't getting spared from a general market selloff after Samsung (SSNLF - the world's #2 chipmaker) guided for its 2014 chip capex to be flat Y/Y. AMAT -1.6%. LRCX -3.7%. ASML -0.7%. UTEK -2.2%. RTEC -3.2%. MTSN -5.1%.
    • Industry analyst Robert Marie observes this is the first time since 2009 that Samsung hasn't upped its chip capex budget. With Intel and TSMC (the industry's two other big clients) also guiding for capex to be flat (if not down) this year, Marie is cautious about 2014 growth, even though others have forecast sales will rebound sharply this year following a rough 2013.
    • KLA-Tencor (KLAC -2.2%) is joining the selloff even though the company posted an FQ2 EPS beat yesterday afternoon, and provided healthy FQ3 guidance - revenue of $790M-$850M and EPS of $1-$1.20 vs. a consensus of $814.5M and $1.11 - on its CC (transcript). KLA also forecast FQ3 bookings will be in a range of $700M-$800M (implies 10% Q/Q growth at the midpoint), and struck an upbeat tone about 2014 investments in 20nm and 3D NAND flash capacity.
    • KLA still expects 10%+ industry growth this year, but admits its outlook is "slightly weaker" than it was three months ago. The company also believes industry adoption of EUV lithography (important for ASML) has generally been pushed out to the 7nm process node from the 10nm node.
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  • Jan. 24, 2014, 2:21 AM
    • Samsung's (SSNLF) net-profit growth slowed significantly in Q4, rising 5.4% on year to 7.3T ($6.7B) won vs an increase of 25.6% in Q3.
    • Sales increased 5.7% from a year earlier to 59.3 trillion won.
    • Operating profit -6% to 8.31T won, the first drop in two years.
    • The company warned that it will be "challenging" to improve its earnings in Q1, "as the weak seasonality of the IT industry will put pressure on demand for components and TV products."
    • The strength of the Korean won hurt earnings by 700B won ($651M), and the company took an 800B won one-time charge related to employee bonuses.
    • Operating profit at Samsung's mobile unit was flat on year at 5.47T won but down from a record 6.7T won in Q3, hurt by the release of new iPhones.
    • Samsung expects Q1 smartphone shipments to rise at a "mid-single digit" pace on quarter and tablet shipments at a "high single-digit" rate.
    • Further operating profit breakdown: chip division rose to 1.99T won from 1.42T won a year earlier; display plunged 90% to 110B won, dragged down by weaker-than-forecast sales of the Galaxy S4 and poor demand for TVs; consumer-electronics dropped to to 660B won from 700B won.
    • Samsung intends to spend a similar amount on capex in 2014 as in 2013, when it invested 23.8T won.
    • Shares closed +3% in Seoul.
  • Jan. 7, 2014, 2:22 AM
    • Samsung (SSNLF) suffered its first fall in profits in nine quarters in Q4, with the company's operating income dropping to a provisional 8.1-8.5T won ($7.6-8B) from 8.84T won a year earlier and missing consensus of 10T won.
    • Revenue increased 5.3% to 58-60T won from 56.1T won but undershot forecasts of 61.5T and represented the slowest growth since 2011.
    • The decline in profits comes amid stiff competition at the high and low ends of the smartphone market, and after greater-than-expected bonus payments to workers.
    • Samsung's full results are due out on January 24.
    • Shares dropped 0.2% in Seoul. (PR)
  • Oct. 25, 2013, 2:21 AM
    • Samsung's (SSNLF, SSNGY) Q3 net profit, excluding minority interest, jumped 25% to 8.05T won ($7.76B), above forecasts of 7.94T won.
    • Sales climbed 13.2% to 59T won.
    • Operating profit +26% to 10.16T won, but that represents a slowdown from 47.5% growth in Q2.
    • Operating profit at the mobile unit rose 19% to 6.7T won, with smartphone shipments climbing in the "mid-10% range" and tablet sales in the "mid-20%" range.
    • Operating profit at the chip division more than doubled to a three-year high of 2.06T won, boosted by stronger chip prices and tighter supply
    • Income at the consumer-electronics division dropped to 3450B won from 400B won, while earnings at the display division fell to 980B won from 1.17T.
    • Samsung expects an extra $1.5T won ($1.4B) payment from Corning (GLW) after the latter agreed to acquire the South Korean company's display unit out of their LCD glass joint venture.
    • Samsung's shares -0.2% in Seoul. (PR)
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  • Oct. 4, 2013, 2:19 AM
    • Samsung (SSNLF.PK) has estimated that its operating profit climbed 22.8-27.8% to another quarterly record of 9.9-10.3T won ($9.2-9.6B) in Q3, in line with consensus of 9.96T won.
    • The company expects that sales grew 11-15% to 58-60T won vs forecasts of 59.7T won.
    • Samsung didn't provide estimates for net income or earnings for each division. Its final results are due out at the end of the month.
    • "Despite record-high earnings, doubts over the sustainability of smartphone-driven profits hint at an overall valuation discount for Samsung," says HMC Investment & Securities analyst Greg Roh.
    • Shares +0.6% in Seoul.
    | 1 Comment
  • Aug. 9, 2013, 10:45 AM
    • Samsung (SSNLF.PK) and affiliate Cheil Industries (a maker of OLED materials) are buying German OLED materials/tech provider Novaled for €260M ($347M).
    • Cheil's CEO promises the deal will yield major OLED R&D synergies. Samsung says it's paying ~10x revenue.
    • Universal Display (OLED +13.4%) shares, which dove last week on a Samsung/Novaled report, and partly rebounded after analysts argued Novaled's offerings are complementary, is below yesterday's AH highs, but remain sharply higher in response to its Q2 beat and strong full-year guidance.
    • Universal mentioned on its Q2 CC sales of green host materials (used in newer Samsung phones, including the Galaxy S4) rose 192% Q/Q and over 6x Y/Y to $9M. Likewise, green emitter sales rose 186% Q/Q and over 8x Y/Y to $13.1M. Red emitter sales totaled $3.6M, +25% Q/Q but -29% Y/Y.
    • The company added product mix and price cuts impacted its materials gross margin, and that there could be some additional margin pressure if host materials sales "proportionally grow faster" than emitter sales.
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  • Jul. 26, 2013, 3:11 AM
    More on Samsung (SSNLF.PK) Q2: Chip business, which accounts for 18% of operating profit, enjoys 71% increase in income to 1.76 won. Profit at display division +58% to 1.12T won. Consumer-electronics income 430B won vs 730B won last year as TV prices fall. Ends Q2 with 33.2T won in cash. To increase capex 5.3% this year to 24T won, including 13T won to expand its chip facilities. (PR)
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Company Description
Sector: Technology
Country: Korea