Samsung Electronics reported record earnings for the fourth consecutive quarter, achieving an operating profit of 107.44 trillion won in the third quarter. However, its stock has seen a nearly 5% drop.
As of 10:40 a.m. on October 29, Samsung's shares were trading at 229,500 won, down 5.17% from the previous trading day. Samsung's preferred shares also fell by 2.92%, trading at 184,700 won at the same time.
During a conference call on the same day, Samsung announced that its operating profit increased by 783.1% compared to the same period last year, reaching 107.44 trillion won. Revenue for the same period rose by 126.9% to 195.25 trillion won, while net profit surged by 514.6% to 75.14 trillion won.
Despite exceeding expectations, the decline in stock price is attributed to the postponement of specific plans for shareholder returns until January, which has dampened investor sentiment.
Samsung indicated during the call that the remaining funds for shareholder returns amount to a maximum of 75 trillion won, excluding the 35 trillion won already executed or confirmed.
A significant portion of the remaining funds is expected to be used for cash dividends and large-scale stock buybacks and retirements. There is also a possibility of adjusting the proportion of preferred stock buybacks.
Samsung acknowledged market interest in the price difference between common and preferred shares and stated that it would actively consider the proportion of preferred stock buybacks based on market conditions when executing buybacks and retirements.
The pressure on common shares is seen as a reflection of the burden of waiting for the confirmation of the shareholder return plan.
* This article has been translated by AI.
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