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Samsung Electronics dramatically cut its guidance for fourth-quarter profits Tuesday as demand falls for its memory chips and smartphones. The world’s biggest smartphone maker said it expects to see an operating profit of $9.7 billion, down nearly 29 percent from last year. Analysts had been expecting profits of more than $13.5 billion.
LG – The world’s second largest TV manufacturer has forecasted profit of just 75.3bn won (£52.5m) for the three months to December last year, which is also an 80 per cent drop from analyst estimates of 387bn won by Refinitiv. LG pulled in 336.8bn won in the fourth quarter of 2017.
Tesla came in pretty close to delivery and production expectations, but close is no longer good enough to win the cigar. The stock closed Monday at about $10 off (about 3%) its consensus price target, indicating that it may still be overvalued.
What does the Apple shortfall mean for other U.S. corporations? China has been a golden goose in recent years for many American brands pursuing growth through global expansion. Starbucks’ 3,000-plus cafes dominate the coffee-shop market there, with more than 50% of market share. Similarly, the success of GM’s Buick and Cadillac, as well as cars produced by its local joint ventures such as Baojun, have made China the automaker’s largest retail market
Nike executives remain bullish about the retailer’s growth in China, saying that the company has not seen any impact on sales in China despite trade tensions. We are bullish about our potential to deliver strong, sustainable growth in China.