News summary on the way home from work, evening briefing.
Samsung Electronics announced results that could be called 'performance shock' (earnings shock), and in terms of operating profit alone, it is said that about 70% of the year ago flew away.
That's around 30%.
It is analyzed that the semiconductor cold wave hit harder than expected.
However, the red light is on for stock prices. Why is earnings and stock prices separate?
Samsung Electronics' fourth quarter earnings 'shock'
Samsung Electronics has released tentative results on a consolidated basis (financial statements prepared by considering subsidiaries and subsidiaries as one) for the fourth quarter of last year.
It received a report card of 70 trillion won in sales and 4.3 trillion won in operating profit, but it was far below market expectations (sales of 72.7226 trillion won and operating profit of 6.8737 trillion won), so the evaluation of 'performance shock' (earning shock) is dominant. That's it.
4.3 trillion won in operating profit in the 4th quarter is a 69% decrease from 13.8 trillion won in the 4th quarter of 2021, a year ago.
It shrunk to the 30% level.
In addition, it is said that it is the first time in eight years since the third quarter of 2014 (4.06 trillion won) that Samsung Electronics' quarterly operating profit fell below 5 trillion won.
4.3 trillion won in operating profit in the 4th quarter is a 69% decrease from 13.8 trillion won in the 4th quarter of 2021, a year ago.
It shrunk to the 30% level.
In addition, it is said that it is the first time in eight years since the third quarter of 2014 (4.06 trillion won) that Samsung Electronics' quarterly operating profit fell below 5 trillion won.
It has not been disclosed until which business field produced what kind of performance, but the dominant interpretation is that it struggled in the semiconductor business, which is the main focus.
So, it can be said that the 'memory cold wave' was colder than the market expected.
However, it is clear that Samsung's semiconductor business is in crisis as it is predicted that the industry will be more severe this year.
Unusual presentation of explanatory material... "Semiconductor sluggishness"
Samsung Electronics distributed an explanatory material unusually at the same time as the announcement of provisional results, and distributed a separate material saying, "We want to explain the factors that cause performance decline by business to alleviate confusion between the market and investors and help them understand the performance."
The main content of the data is that performance declined significantly and smartphone sales slowed due to sluggish demand in the memory semiconductor sector.
Let's move on to the content of the material.
Amid continued external environmental uncertainties such as the possibility of a global economic recession, memory business performance declined significantly due to sluggish demand, and smartphone sales also slowed, resulting in a sharp decline in company-wide performance QoQ (Samsung Electronics 2022 Q4 provisional performance explanatory data)
Samsung Electronics went on to say, "In the memory semiconductor sector, purchase demand decreased significantly in the fourth quarter of last year due to overall inventory adjustments." It fell drastically,” he explained.
It's not just the gloomy results in the provisional results.
If you look at Samsung Electronics' sales, you can see that its global power has been proven once again.
Annual sales exceeded 300 trillion won, which is the first time in the history of Samsung Electronics.
It continues to break all-time sales records, so it can be evaluated that its global market dominance is still intact.
It can be summarized as 'There is also a record of making a save amidst an earnings shock'.
Despite the 'earnings shock', the stock price is 'red light'
Samsung Electronics' share price showed the opposite trend from the earnings announcement.
After rising more than 2% during the day, the closing price rose 1.37%, and continued to rise for 3 consecutive trading days.
The stock market doesn't seem to be very concerned about sluggish performance. Why is that?
There must be several reasons, ▲ it was fully predicted that the semiconductor industry was not good, ▲ expectations for the possibility of memory production cuts grew, and ▲ there were many evaluations that the stock price was near the bottom.
In the first quarter of this year, there is also an analysis that the device experience (DX) sector will offset the sluggish performance of the semiconductor (DS) and display (SDC) to some extent due to the effect of new smartphones.
In addition, there are many predictions that the inventory burden will improve and the business environment will improve from the third quarter of this year, and it can be seen that the stock price reflects these predictions in advance.
It is said that semiconductor stocks usually lead by about six months.
Hynix has not yet announced its earnings, but 'earnings shock' is expected, but its stock price rose 2.09%.
I predicted 'high and low', but is it 'high and low'?
As is the case with semiconductors, there are many perspectives that view our economic outlook this year as 'high and low' (low in the first half and rebound in the second half), but recently a gloomy outlook that it can be 'high and low' rather than 'high and low' is emerging little by little.
There are several reasons.
First of all, it is because the Federal Reserve System (Fed · Yeonjun), which is the central bank of the United States, put weight on that it will not lower the base rate this year.
If the US Federal Reserve raises the benchmark interest rate, there is a high possibility that we will follow suit, fearing the outflow of foreign funds.
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