Samsung confirmed earlier reports it is set to post good numbers for Q2 2016, following the launch of its flagship Galaxy S7 smartphone.

The company is guiding for operating profit of KRW8.1 trillion ($7 billion) on revenue of KRW50 trillion. These figures are up year-on-year by 17.4 per cent and 3.1 per cent respectively, and means the company is on track for its most profitable quarter in two years.

Samsung does not provide any detail in its earnings forecasts, but with its mobile activities making up such a large portion of its business, a strong forecast is a reasonable indicator that it is performing well in this space.

The vendor’s current flagships – Galaxy S7 and Galaxy S7 Edge – appear to be playing a major role in its upturn, which will boost the company’s profitability. Premium smartphones offer a better profit margin than mid-tier devices, which are more of a volume play.

With its curved-screen Edge devices, Samsung has found a point of differentiation in the competitive market. It is also pushing ahead with its Samsung Pay service, a proposition similar to Apple Pay.

Looking forward, the company is expected to refresh its large-screen, stylus-driven Galaxy Note phablet line in the not too distant future, providing it with another useful bump as the Galaxy S7 ages.

“I am now comfortable that Samsung is going to see a good 2016 on the back of this cycle and against the weak expectations set during the difficulties it experienced in 2015,” wrote analyst Richard Windsor in his Radio Free Mobile blog. “The net result is that Samsung will return to a period of good earnings growth for a few more quarters and then settle down into something much more leisurely as the current cycle comes to an end.”

Samsung is set to publish its full Q2 numbers at the end of this month.