Samsung projects weak third quarter

Samsung DRAM
Falling memory prices continue to plague Samsung's quarterly revenue and earnings. (Samsung)

Plagued by falling memory prices, Korean electronics giant Samsung expects its third fiscal quarter of 2019 to be the fourth straight quarter of a year-to-year revenue decline, according to a blog post on the site of Display Supply Chain Consultants (DSCC).

According to the article, Samsung’s third-quarter revenue is pegged at $51.9 billion, which is up 8% from the previous quarter but down 11% from the year-ago quarter, mainly attributed to falling prices for memory chips. Operating income is slated to $6.4 billion, up 14% from the previous quarter but 60% lower than the year-ago quarter due to lower margins in the semiconductor sector, Samsung was quoted as saying in the blog post. The graph following the article shows Samsung's financials. 

Company-wide operating margins are expected to improve slightly from 11.8% in Q2’19 to 12.4% in Q3’19 as the memory market begins to stabilize, but is below the 27% earned in Q3’18 when semiconductor operating margins were 55%, the article said.

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Samsung does have a few bright spots. According to the DSCC article, revenue from OLED (Organic Light Emitting Diode) displays are projected to rise 40% sequentially, though they are still down 10% from a year ago. Samsung is banking on growth in flexible and foldable displays to give its OLED business a boost, as sales of those products are expected to jump 85% from the previous quarter.

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