Samsung Electronics expects third-quarter profits to decline by 78%

South Korean chip giant Samsung Electronics expects Operating profits decreased by 78% In the quarter ending September, according to guidance issued by the company.

The company expects revenue to reach about 67 trillion South Korean won ($50.02 billion) for the third quarter, while operating profit will reach about 2.4 trillion won.

This compares with the 76.78 trillion won recorded in sales and 10.85 trillion won in operating profit recorded a year ago.

On a quarterly basis, third-quarter guidance reflects an 11.5% increase from the second-quarter revenue figure of 60.01 trillion won, and more than three times operating profit of 670 billion won.

Samsung’s operating profit guidance was slightly higher than analysts’ expectations. Before issuing the guidance, analysts polled by LSEG expected operating profit of 2.3 trillion won for the September quarter, a 78.7% decline year-on-year.

Revenue was expected to reach 67.8 trillion won, a decline of 11.6%, according to forecasts by LSEG, formerly known as Refinitiv.

Samsung is the world’s largest manufacturer of memory chips, used in products ranging from laptops to servers. It is also the world’s largest smartphone operator.

Shares of the chip giant rose 3.16% on Wednesday. The stock was the biggest gainer on South Korea’s Kospi index and strengthened the index to lead gains in Asia.