Samsung Electronics likely to report best quarterly profit in 3 years

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Operating profit for the world’s largest memory and smartphone maker rose to $14 billion for the quarter ended September

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Seoul – Samsung Electronics Co Ltd is likely to turn in its best quarterly profit in three years and a record revenue, thanks to rising memory chip prices and brisk sales of its new foldable smartphone, analysts predict.

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Operating profit for the world’s largest memory chip and smartphone maker reached 16.1 trillion won ($14 billion) in the quarter ended September, according to a Refinitiv SmartEstimate of 16 analysts weighted toward those that are consistently accurate.

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This will be 30% from the 12.35 trillion won a year ago and the highest since the third quarter of 2018. Revenue likely rose 11% to ₹74.6 trillion, a record high.

Samsung Electronics close to finalizing $17B Texas chip plant – Source

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An unprecedented global shortage in semiconductors

Tor chips amid the pandemic have weighed down Samsung’s results and shares, which soared 45% last year and hit a record high in early 2021.

But the stock has since fallen, thanks to losses in September when US peer Micron warned that its memory chip shipments would slip in the near term, amid industry views that chip prices could peak in July-September. Will fall later.

“Samsung shares declined because of Micron’s guidance, but unlike Micron, Samsung internalizes key components … and has other businesses such as mobile and foundry,” said Hanwha Investment & Securities analyst Lee Soon-hak. “

“The memory (chip) prices are seeing a rebounding next year after a short period of decline,” Lee said.

Samsung will announce preliminary results on Friday.

Chip Division, Smartphones

Samsung’s chip division is likely to report operating profit of 9.9 trillion won, an average of six analysts’ forecast shows, up 79% from a year ago, helped by growth in memory chip prices and shipments.

Samsung Electronics jumps 53% in profit, tops estimates

Prices of DRAM chips used in servers, mobile phones and other computing devices rose 7.9% over the June quarter, while prices for NAND flash chips serving the data storage market rose 5.5%, data from research provider Trendforce. Get to know from.

Analysts also forecast double-digit operating margins for Samsung’s chip contract manufacturing business as customers race to secure production capacity.

Analysts said its mobile division won about 3.7 trillion in operating profits, down from 4.45 trillion won a year ago, but won on foldable smartphone sales from last quarter’s 3.2 trillion.

Counterpoint senior research analyst Jen Park said an estimated 2 million Galaxy Z Fold 3 and Z Flip 3 models were sold in the one month since their late August launch, with South Korea leading the way.

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Sources said it was getting closer to finalizing manufacturing, after market participants spoofed Samsung’s full results for an update to Samsung’s $17 billion US semiconductor factory later this month.

($1 = 1,187.9300 won)


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