Samsung Electronics (005930) Earnings: 4Q Operating Profit Misses Estimates

Samsung Electronics on Smartkarma

According to recent analyst coverage on Smartkarma, Samsung Electronics (005930 KS) has been upgraded to Overweight by Joe Jasper. This comes as part of a bullish outlook on global equities, with 44 individual stock buy recommendations highlighted in the technology, services, consumer discretionary, financials, and materials sectors. The company’s continued leadership in the technology sector has also been noted as a key factor in its overall positive outlook.

However, not all analysts share the same sentiment. Douglas Kim reports a bearish lean, stating that the Lee family plans to sell an additional 2.6 trillion won worth of Samsung Group companies to cover inheritance taxes. This could have a negative impact on Samsung Electronics, Samsung C&T, Samsung SDS, and Samsung Life Insurance. In a potentially related move, regulators have announced a temporary ban on stock short selling which may benefit the Lee family in unloading their shares.

On a more positive note, William Keating highlights a strategic shift in marketing strategy that has reversed Samsung Memory’s downward average selling price (ASP) trend. While the company’s Q323 revenues and operating profit have improved from the previous quarter, they are still down from the same quarter last year. Keating notes that further production cuts may still be necessary for lagging edge products.

Finally, Ken S. Kim raises the question of whether a merger and acquisition (M&A) announcement from Samsung Electronics may be on the horizon. With a significant amount of cash available for future capex and a new 3-year shareholder return plan in place, the possibility of M&A activity is being considered. However, the need for cash to secure ammunition for potential M&A may also be a factor.

A look at Samsung Electronics Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

According to the Smartkarma Smart Scores, Samsung Electronics has a positive long-term outlook. The company scores a 3 out of 5 for both Value and Dividend, indicating moderate performance in these areas. However, it excels in Growth with a score of 4, and in Resilience and Momentum with scores of 4 and 5 respectively. This means that Samsung Electronics is expected to experience strong growth and has a good track record of withstanding market fluctuations.

Samsung Electronics is a leading manufacturer of a wide range of electronic products, including semiconductors, personal computers, televisions, and home appliances. With its strong focus on growth and resilience, the company is well-positioned to continue its success in the future. Investors can expect steady returns from Samsung Electronics, making it a good long-term investment option.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma