Samsung saw plenty of post-Independence Day fireworks today on Wall Street. And the South Korean electronics giant isn't celebrating it. Apple's leading tech rival saw its shares tumble close to 4 percent today after the company missed quarterly earnings forecasts.

The sell-off took place despite the optimistic news that Samsung enjoyed 47 percent rise in April-June operating profit to a record $8.3 billion.

The guidance, released ahead of full quarterly results due on July 26, was worse than an average forecast of 10.16 trillion won in a poll of 43 analysts by Thomson Reuters I/B/E/S.
"The slowdown in its handset business appears to be worse than expected and the disappointing result simply reindorses the market view that Samsung's smartphone growth momentum is slowing," Lee Sei-chul, an analyst at Meritz Securities, tells Reuters. "But it's got the component side of the business, which is showing solid improvements, and new handset product lineups for the third quarter, so (overall) earnings are likely to grow again in the current quarter."

Samsung, however, wasn't alone today as a top smartphone maker that managed to disappoint Wall Street. HTC was the other Asian cell phone manufacturer indicating that growth may be slowing. Both Samsung and HTC's second-quarter outlooks disappointed financial analysts, the bulk of whom thought that recent high-end smartphone launches from each company would propel earnings and outlooks to record heights.

Source: Reuters