Samsung on Tuesday estimated that the company's fourth-quarter operating profit will reach 15.1 trillion won (about 141.3 billion US dollars).
That figure is up 64% from a year earlier, but still below the average of 15.9 trillion won expected by Thomson Reuters analysts.
Samsung said it expects fourth-quarter revenue to be 66 trillion won, slightly below the 66.8 trillion won expected by Thomson Reuters analysts. Throughout 2017, Samsung expects total operating profit will reach 53.6 trillion won, while revenue will reach 239.6 trillion won.
Due to the not-for-profit performance outlook, Samsung shares dropped 3.11% in South Korea on Tuesday, leaving the market value to evaporate nearly 10 billion U.S. dollars. The same day, South Korea's composite index closed down 0.12%.
Mehdi Hosseini, senior analyst at Susquehanna Financial Group, told CNBC: "I think Samsung's Q4 earnings outlook is mainly due to the smartphone business. I still think that, driven by memory and OLED screens, Samsung's semiconductor business and display business performed very well in Q4. & rdquo;
Samsung Electronics's initial earnings report did not disclose the net profit situation, nor according to the department to disclose the relevant financial data. According to the plan, the company will release the official financial report at the end of this month. Samsung Electronics is currently the world's largest memory chip, smart phone, display manufacturer, the company's business also includes appliances and so on.
In recent quarters, the booming semiconductor business has become an increasingly important source of earnings for Samsung. According to Samsung, this is mainly due to the strong demand for memory chips from data centers and new smartphones.
Samsung had previously warned that competition in the high-end smartphone market will intensify in the fourth quarter of 2017 as competitors release new devices.
In the third quarter of last year, Samsung achieved operating profit of 14.5 trillion won (about 129.1 billion US dollars), in line with the previous forecast. The quarter also saw a record $ 55 billion revenue. Meanwhile, Samsung said it will pay about 29 trillion won in dividends between 2018 and 2020.