Samsung’s Q3 profit guidance outperforms estimates despite Note 7 recall

Samsung’s earnings guidance report for Q3 was released on October 6th, showing better results than expected considering the financial hit of its recent Galaxy Note 7 recall.

According to the company’s estimate, the consolidated operating profit rose by about 5.5 percent to approximately 7.8 trillion South Korean Won (about $9.2 billion CAD) in the three months since September 2016.

An average of analyst estimates combined by Bloomberg had tipped the mobile phone giant to come in with 7.58 trillion SKW in operating income. Meanwhile, Reuters had predicted 7.4 trillion SKW — the same as last year’s operating profit.

The company estimates total revenue for the quarter fell 5.2 percent to 49 trillion SKW.

Many analysts are stating that it is the company’s components business — including memory chip and display earnings — that is helping to offset the impact of its Note 7 debacle, which saw about 2.5 million devices worldwide recalled.

The numbers provided by Samsung are only an overall estimate, with the full results coming in late October 2016.

Related: Galaxy Note 7 with replacement battery bursts into flames on a plane [Update]

[source]Samsung[/source][via]Bloomberg, Reuters[/via]