Samsung cuts $2.3 billion off its profit guidance due to Galaxy Note 7 crisis

Samsung slashes its profit forecast

Samsung has slashed its third-quarter operating profit guidance to 5.2 trillion South Korean won ($4.66 billion) from 7.8 trillion won after the electronics giant was forced to permanently end production of its embattled Galaxy Note 7 smartphone after several devices caught fire.

The revision represents a 33 percent cut in guidance and reflects the Note 7 recall crisis which has been one of the most difficult periods of Samsung's history.

Third-quarter revenue has also been revised down and is now expected to be 47 trillion won, from previous guidance of 49 trillion won.

Samsung needs to be incredibly transparent: Analyst

On Tuesday, Samsung said it was halting sales and production of the Galaxy Note 7.

"For the benefit of consumers' safety, we have stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," Samsung said in a statement.

Some $18 billion was wiped off Samsung's market capitalization on Tuesday, with shares of the firm falling further on Wednesday.

Before the recall happened, analysts were expecting Note 7 shipments to total between 15 million and 19 million over the third and fourth quarter of 2016 and the first quarter of 2017. And the lost opportunity could total around 10.7 trillion won ($9.5 billion), based on 16 million units in foregone Note 7 shipments, according to Nomura.