Thursday, Sep 28, 2023
English News
  • Hyderabad
  • Telangana
  • AP News
  • India
  • World
  • Entertainment
  • Science and Tech
  • Sport
  • Business
  • Rewind
  • ...
    • NRI
    • View Point
    • cartoon
    • Columns
    • Education Today
    • Reviews
    • Property
    • Videos
    • Lifestyle
E-Paper
  • NRI
  • View Point
  • cartoon
  • Columns
  • Reviews
  • Education Today
  • Property
  • Videos
  • Lifestyle
Home | Business | Samsung Expects Record 11 Bn Profit In Q2 On Robust Chip Biz

Samsung expects record $11 bn profit in Q2 on robust chip biz

In its earnings guidance, the South Korean tech giant estimated its operating profit at 12.5 trillion won ($11 billion) for the April-June period, up 53.4 percent from a year ago.

By IANS
Updated On - 10:39 AM, Wed - 7 July 21
Samsung expects record $11 bn profit in Q2 on robust chip biz
whatsapp facebook twitter telegram

Seoul: Samsung Electronics on Wednesday expected market estimate-beating second quarter earnings as its semiconductor business apparently offset a tepid performance from its mobile business.

In its earnings guidance, the South Korean tech giant estimated its operating profit at 12.5 trillion won ($11 billion) for the April-June period, up 53.4 percent from a year ago.

Its second-quarter operating income estimate beat the market consensus of 11.2 trillion won in a survey by Yonhap Infomax, the financial arm of Yonhap News Agency that surveyed 15 local brokerage houses last month.

Samsung projected its second-quarter sales at 63 trillion won, up 19 percent from a year earlier. The figure is also above the market consensus of 61.3 trillion won.

Should the preliminary earnings results stand, its sales will be the largest for any second quarter to date, while the operating profit will be the highest since the third quarter of 2018.

On a quarterly basis, Samsung’s second-quarter operating profit estimate was up 33.2 percent from the first quarter, although that of sales was down 3.6 percent from the previous quarter.

Samsung, the world’s leading memory chip and smartphone vendor, did not break down performances of its respective business divisions, saying it will announce the detailed earnings later this month.

Analysts here believe Samsung’s semiconductor business led the company’s second-quarter performance.

They earlier predicted Samsung’s chip business would post more than 6.5 trillion won in operating profit for the second quarter, nearly double from the first quarter.

“With the expanded growth of memory chip prices, losses from its Austin fab should be reduced compared with the first quarter,” said Lee Jae-yun, an analyst at Yuanta Securities.

Samsung suffered a monthlong shutdown of its chip fabrication plant in Austin, Texas, after a severe snowstorm caused power and water outages in February. It went back to full operations in April, but the company reported more than 300 billion won in losses.

Samsung’s mobile business was predicted to report tepid earnings compared with the first quarter when it posted 4.4 trillion won in operating profit due to a resurgence of COVID-19 in major markets and chip shortages.

“The IM unit was negatively affected by the COVID-19 situation in India and Vietnam,” said Doh Hyun-woo, an analyst at NH Investment & Securities. “We expect its second-quarter smartphone shipments at 60 million units, down 20 percent from a quarter earlier.”

Analysts believe Samsung’s Consumer Electronics (CE) division, which manages TVs and home appliances, posted similar or slightly lower earnings compared with the first quarter with around 1 trillion won in operating profit.

Analysts said Samsung’s third-quarter earnings will be better than the second quarter on the back of rising chip prices and recovery of its smartphone business.

Telangana Today Whatsapp
  • Follow Us :
  • Tags
  • Samsung

Related News

  • Samsung, Huawei to drive mass adoption of foldable smartphones next year

    Samsung, Huawei to drive mass adoption of foldable smartphones next year

  • Samsung to integrate generative AI into home appliances next year

    Samsung to integrate generative AI into home appliances next year

  • Compliance panel keeps Samsung in check: Committee chair

    Compliance panel keeps Samsung in check: Committee chair

  • Samsung India expects 30 pc of premium segment revenue from foldable phones this year

    Samsung India expects 30 pc of premium segment revenue from foldable phones this year

  • Samsung working on 440MP camera sensor: Report

    Samsung working on 440MP camera sensor: Report

  • ‘Make in India’ Galaxy Z Flip5 and Z Fold5 now available in India

    ‘Make in India’ Galaxy Z Flip5 and Z Fold5 now available in India

Latest News

  • You are not thinking about the team: Shakib Al Hasan takes on Tamim Iqbal

    31 seconds ago
  • Alia Bhatt celebrates Ranbir Kapoor’s 41st birthday with heartfelt message

    3 mins ago
  • North Korean leader urges greater nuclear weapons production in response to a ‘new Cold War’

    11 mins ago
  • PM Modi pays tribute to Lata Mangeshkar on her birth anniversary

    18 mins ago
  • US Embassy in India surpasses goal of processing one million non-immigrant visas

    26 mins ago
  • Hyderabad: Pakistan Captain Babar Azam touched by Indian fans’ support for World Cup 2023

    31 mins ago
  • Bihar: Nitish angered by English display board at school library

    33 mins ago
  • Joe Jonas, Sophie Turner debate over divorce proceedings location

    41 mins ago

company

  • Home
  • About Us
  • Contact Us

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

© Copyrights 2022 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam