Samsung Skepticism Grows as Two More Analysts Slash Estimates

A collection of Samsung Electronics Co. Galaxy smartphones sit in a display cabinet beside prices and specification information inside a Mobile TeleSystems PJSC (MTS) mobile communications store in Moscow, Russia, on Friday, Sept. 1, 2017. Billionaire Vladimir Evtushenkov’s Sistema PJSFC may have to reduce its stake in Russia’s largest wireless carrier, Mobile TeleSystems PJSC, to help pay a $2.3 billion court damages bill, according to investment analysts.Photographer: Andrey Rudakov/Bloomberg

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By Eric Lam (News)

December 21, 2017 at 3:50 AM UTC

This article is for subscribers only.

Asia’s technology rally this year appears to be sputtering as analysts at two firms cut their forecasts yesterday for Samsung Electronics Co.’s fourth-quarter operating profit, fueling growing skepticism the industry’s gains are running out of gas.

HI Investment & Securities Co. cut its fourth-quarter operating profit estimate for Samsung by 4.8 percent to 15.7 trillion won ($14.5 billion) from 16.5 trillion in a Dec. 20 report, reflecting the strong won and bonus payments. Meanwhile, analysts at Korea Investment Holdings Co. cut their projection for the same figure by 7.8 percent in a report published the same day. In the past four weeks six firms have lowered their estimates, according to data compiled by Bloomberg.