Samsung Electronics Reports 20 Trillion Won Operating Profit in Q4, Exceeding Heightened Expectations

Samsung Electronics announced on the 8th that its operating profit for the last quarter was tentatively estimated at 20 trillion won.

Sales were reported at 93 trillion won. Operating profit increased by 208.17% compared to the same period last year, and sales increased by 22.71%.

It achieved results that exceeded market consensus.

The consensus was sales of 91.47 trillion won and operating profit of 18.51 trillion won.

In particular, analysts generally estimated an operating profit of around 20 trillion won this week. The results met the heightened expectations.

Last year's total sales were 332.77 trillion won, an increase of 10.6% from the previous year. Operating profit expanded to 43.53 trillion won, a 33% increase.

SK Hynix is estimated to have sales of 30 trillion won and an operating profit of 15.67 trillion won in the last quarter. For the year, the consensus is formed at sales of 94.35 trillion won and operating profit of 43.72 trillion won.

If SK Hynix exceeds the estimated performance in the fourth quarter, it will surpass Samsung Electronics in annual operating profit.

Meanwhile, Samsung Electronics resolved to buy back its own shares worth 2.5 trillion won the previous day. It will acquire 18 million shares, which is 0.3% of the total issued shares. The buyback will take place from the 8th until April 7th for three months.

The acquired shares are not subject to cancellation. Samsung Electronics explained that it is acquiring its own shares for the purpose of stock-based compensation, such as performance-linked stock compensation (PSU, Performance Stock Unit) and performance incentives (OPI, LTI), which were introduced last October to motivate employees to achieve results.