Were Samsung's Earnings Really That Bad?

Were Samsung's really as bad as the media portrayed it as?

Ashraf Eassa
Evan Niu, CFA and Ashraf Eassa
Jan 28, 2014 at 2:30PM
Technology and Telecom

Samsung (OTC:SSNLF) is a consumer electronics giant that has made fairly short work of becoming the top smartphone vendor by unit volume. Further, thanks to its very tight vertical integration (which includes chips, DRAM, NAND, and displays all in-house), it has a very attractive cost structure even in the low end of its product lineup. That being said, the company's earnings report was less-than-stellar. 

Due to a one-time bonus payment to employees, coupled with slower-than-expected sales of its flagship Galaxy S4, the company saw an unexpected drop in operating profits. Further, the company's forecast indicated that it would see a fairly difficult (but seasonal) first half of 2014 before things really picked up in the second half. Should Samsung investors be worried? Will the Galaxy S5 be enough to save the day from Apple's (NASDAQ:AAPL) share gains? 

Join Evan Niu, CFA and Ashraf Eassa as they discuss Samsung's recent earnings report.