Samsung Electronics Company, manufacturer of the long-running Samsung Galaxy series of phones, failed to reach analyst projections for both revenue and operating income, calculated as gross sales receipts less cost of goods sold, in the fourth fiscal quarter of 2017 in South Korea.
Financial market experts in South Korea feel the failure to reach targets is due jointly to end-of-year bonuses paid to Samsung Electronics Co. employees, in turn causing profits to drop, and the fact that the South Korean Won has been surging electrically as of recent.
Representatives from Samsung have shared publicly that the only way to have raised revenues to meet analyst predictions would have been raising the prices of its products. South Korean tech market analyst Sanjeev Rana shared, “Impact from currency is inevitable, [and] it cannot be offset unless we have price increases, but we understand contracts with Apple are pretty much fixed in terms of pricing.”
Mr. Rana estimated that the fourth quarter revenue of Samsung Electronics was a whopping 600 billion won short, due solely to the exchange rate’s impact on performance.
Operating Profit And Revenues Didn’t Just Drop – So Did The Share Price Of Samsung Electronics Company
Financial market trading is more popular today than ever before. While nobody besides highly trusted computer programmers and top-level executives of financial market exchanges know what algorithms are used to ascertain various share prices, it’s entirely safe to say that company performance in the real world factors into share price, and nothing but such real world factors matter when it comes to share price.
Samsung Electronics Company’s common stock share price dropped slightly more than 3 percent when trading closed on December 31st, 2017. In terms of won, each share was worth 2.52 million won.
Even though the stock price of Samsung Electronics Co. hit an all-time, record-breaking high in November, the share price has fallen through the proverbial floor since, down a concerning 12 percent since the first day of November, 2017.
When it comes to sales in the fourth fiscal quarter of 2017, seasoned expert financial analysts estimated that total gross receipts would reach at least 67.6 South Korean won. It’s true that total sales throughout the time period, as a matter of fact the only such period being considered for such overarching underperformance in fiscal year 2017.
However, Samsung can feel confident it’s the leading manufacturer of organic light-emitting diodes (OLED) screens, and supplies Apple with their entire stock of OLED screens.