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Samsung’s Q2 profit plummets to two-year low; stock climbs

Samsung Earnings Q2 2014

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.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.