Samsung Electronics recorded its highest ever profits last quarter, but three months on things aren’t looking so great. The company issued guidance today warning that revenue and profits for the three months ending December 31st 2018 will be sharply down year-on-year. Samsung expects sales of about 59 trillion won (about $52.5 billion), down 11 percent from 12 months prior, while operating profit is set to drop 29 percent to about 10.8 trillion won (about $9.6 billion).
LG Electronics followed suit, saying that it expected its fourth quarter operating profit to drop 80 percent from the same period a year earlier, far below expectations.
LG’s and Samsung’s forecasts shocked investors and analysts. As CNBC notes, Samsung analysts were expecting 13.2 trillion won of operating profit from 62.8 trillion in revenue. Unusually, Samsung has issued a statement explaining its guidance; the company normally waits for the full earnings release before commenting on its performance in detail. LG did not offer any reasons for the downward guidance. Both companies will report earnings at the end of January.