Samsung on Tuesday morning reported unaudited financial results for the second quarter that badly missed analysts’ estimates. The company said that it expects second-quarter operating profit to fall to 7.2 trillion won, or approximately $7.1 billion, versus analysts’ expectations of 8.6 trillion won. That figure marks a massive 24% decline from the year-ago quarter. Samsung also said that it expects June-quarter revenue to decline 10% to 52 trillion won, or approximately $51.4 billion.
Samsung’s weak performance was in line with guidance offered back in April, but it still missed estimates quite badly. Samsung’s chief financial officer also warned late last month that Q2 profit would be “not that good.”
The company blamed the results in part on the Korean won’s appreciation versus the dollar and the euro, and it also said sales of entry-level and mid-range smartphones were weak in some Asian and European markets due to slowing demand and strong competition.
Shares of Samsung closed up 0.23% at 1,295,000 won in Tuesday’s session on the South Korean exchange, thanks in part to Samsung’s claim that its third-quarter results would show improvements. Renewed chatter surrounding possible dividends also likely played a role.