Trouble ahead for Samsung?

Samsung Earnings Preview Q1 2013
Samsung Earnings Preview Q1 2013

If Apple’s (AAPL) recent 25% dive in share price taught us anything, it’s that investor sentiment can sour at the drop of a hat with little more to go on than a few questionable rumors from analysts. With Apple on the ropes, attention may soon turn to Samsung (005930) as the company’s meteoric rise finally begins to slow.

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Yonhap News Agency on Monday reported that Samsung’s staggering momentum may finally begin hit a seasonal speed bump. According to Korean financial firm FnGuide Inc., Samsung is expected to post a first-quarter operating profit of $7.84 billion, down nearly 6% sequentially. Samsung’s net profit is expected to sink 4.58% to $6.44 billion in the first quarter according to FnGuide, and revenue is projected to slide nearly 5% to $50.3 billion.

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Samsung had previously reported three consecutive quarters of record profits culminating in a huge holiday quarter; the company expects to report $8.3 billion in operating profit on sales of $53.6 billion when it posts its fourth-quarter results later this month.

Several other firms agree that Samsung’s record run will end in the current quarter, and the market may respond negatively. Taking seasonality into account, however, FnGuide’s projections suggest Samsung’s post-holiday performance will take less of a hit than many of the company’s rivals are likely to see.

The results would also represent a huge jump from Samsung’s results in the first quarter last year, when the company posted an operating profit of $5.54 on $42.85 billion in revenue.

Samsung shares sank 2.58% on the Korea Stock Exchange during Tuesday’s session.


This article was originally published on BGR.com