Samsung tipped Q2 operating profit to have surged, driven by memory chip sales and strong demand for electronics equipment stemming from continued Covid-19 (coronavirus) restrictions.
In an earnings guidance released today (7 July), the company forecast operating profit would be 52.4 per cent higher year-on-year at KRW12.5 trillion ($11 billion) and consolidated revenue to be up 18.9 per cent to KRW63 trillion.
The preliminary results include a one-time gain related to Samsung’s display business.
Analysts noted the expected operating profit growth comes despite weaker device sales caused by component shortages.
In March, Samsung warned serious supply issues could impact flagship model availability and earnings in Q2.
Park Sung-soon, analyst at Cape Investment and Securities, told Reuters the vendor’s Q3 operating profit will likely be even higher due to strong DRAM memory chip prices, and peak seasons for its mobile and display businesses.
But Bloomberg pointed to rising negative sentiment due to concerns memory prices may dip as stockpiling efforts taper off.
Samsung will reveal net profit and earnings by division when it releases full Q2 figures later this month.Subscribe to our daily newsletter Back