As the electronics and semiconductor markets turn around, expectations for improved performance are growing. Samsung Electronics’ preliminary performance fell short of expectations, but it led the market by consistently showing an upward trend in operating profit.

Samsung Electronics announced its provisional performance for the fourth quarter of 2023 on the 9th, with sales of 67 trillion won and operating profit of 2.8 trillion won on a consolidated basis.

This fourth quarter's performance showed a 0.59% decrease in sales and a 15.23% increase in operating profit compared to the previous third quarter. Compared to the same period last year, sales decreased by 4.91% and operating profit decreased by 35.03%.

The provisional sales for 2023 are estimated at approximately KRW 258 trillion, a 35% decrease from 2022. Operating profit totaled approximately KRW 6.54 trillion, a sharp decline of nearly 85% compared to KRW 43 trillion in 2022.

However, looking at the quarterly performance trend, the operating profit has been improving every quarter from KRW 640.2 billion in the first quarter to KRW 2.4 trillion in the third quarter and the tentative KRW 2.8 trillion announced this time in the fourth quarter, showing a gradual upward trend.

Even though the fourth quarter performance is below market expectations, Samsung Electronics' stock price is currently up slightly by 0.65% to 77,000 won, reflecting market expectations of a turnaround from the semiconductor slump.

The provisional results are estimated based on the International Financial Reporting Standards (IFRS) adopted by Korea, and are provided to assist investors while the financial statements have not yet been finalized.

Meanwhile, Samsung Electronics plans to receive inquiries about management status in advance to strengthen communication with investors and improve understanding, and provide answers to issues of high interest to shareholders during the earnings announcement conference call.