Samsung Electronics' stronger-than-expected quarterly earnings forecast failed to wow investors, who are worried a fast recovering won and competition are already starting to cut into profits.
Analysts were looking ahead to the South Korean company's fourth-quarter results, which could signal a slowdown linked to increased spending and heightened competition from the likes of Japan's Sony and home rival LG Electronics.
Samsung, the world's top maker of memory chips and flat screen TVs, made a spectacular turnaround this year, riding a sector recovery and wrestling market share from global rivals, sending its stock to a record high last month.
But analysts said the best might be over.
Samsung shares have fallen 9 per cent from a record struck on September 22nd versus a 6 per cent fall in the broader market . The stock is up 67 per cent so far this year, beating a 42 per cent rise in the market.
Today, Samsung forecast third-quarter consolidated earnings to come at median 4.1 trillion won (£2.19 billion), higher than market estimates and up sharply from 2.42 trillion won in the second quarter. If earnings come in as indicated, Samsung could post one of its strongest quarters in July-September.
The recovery is likely to be most evident in its flagship memory chip business, which is expected to post a parent-basis operating profit margin of about 16 per cent, up from 3 percent in the second quarter and an abysmal 17 per cent loss margin in the hard-hit-first quarter.
Reuters