Analysts, Telecom News, ET Telecom
South Korean tech giant is expected to report July-September operating profit of 16.3 trillion won ($ 13.8 billion), up 31.9 percent from a year earlier , while its sales are expected to increase 12.2 percent year-on-year to 75.1 trillion won over the period, according to data from nine local brokerages compiled by Yonhap Infomax, Yonhap News Agency reports.
Compared to the previous quarter, Samsung’s operating profit and sales in the third quarter are expected to increase by 29.7% and 18% respectively.
Samsung, the world’s largest producer of memory chips and smartphones, will announce its third quarter profit forecast next week.
Analysts predict that Samsung’s semiconductor business once again anchored the company’s performance in the third quarter thanks to rising memory chip prices and improving rates of return.
They expected Samsung’s chip business to report operating profit of around 10,000 billion won for the third quarter.
Earlier this month, the IC Insights market study predicted that Samsung could record $ 22.32 billion in third-quarter semiconductor sales and defend its status as the world’s largest chip seller.
“For its chip business, improving profitability through cost reduction has played an important role,” said Kim Kyung-min, analyst at Hana Financial Investment.
“This is made possible by the increased performance of advanced nodes in the memory-less industry and cost reduction efforts in 15-nanometer DRAM flash and 128-layer NAND products.”
With strong chip activity, analysts said the weakness of the Korean won in the third quarter would also have helped Samsung’s performance in the third quarter.
Analysts also expected earnings from Samsung’s display business to improve due to seasonality and could post better than in the second quarter, when a one-time gain is reflected.
They estimated that the display unit would generate around 1.5 trillion won in operating profit.