Brokerages lift Samsung's 2016 operating profit forecast

Some brokerage firms have lifted their forecasts of Samsung Electronics Co.'s operating profit for this year after the company announced a better-than-expected earnings guidance for the third quarter, according to the brokerages on Sunday.

Despite a damaging recall of the Galaxy Note 7 smartphone, Samsung said Friday that it is estimated to report a 5.5 percent rise in its third-quarter operating profit that would be at 7.8 trillion won ($6.9 billion).

Samsung Securities raised its forecast for Samsung's 2016 operating profit to 30.6 trillion won from 29.2 trillion won following the earnings guidance.

Hyundai Securities also lifted its projection for Samsung's operating profit for this year to 30.1 trillion won from 29.5 trillion won.

NH Investment & Securities is scheduled to raise its forecast for Samsung's 2016 operating profit to over 30 trillion won.

"The market had anticipated Samsung to post an operating profit of 7.4 trillion won for the third quarter, but the guidance beat estimates by about 400 billion won," said Lee Se-cheol, an analyst at NH Investment & Securities.

The brokerages expected Samsung's revenues for this year to exceed 200 trillion won.  (Yonhap)