S7 Success: Samsung Set For Q2 Profit Boost
Samsung has today issued its second quarter earnings guidance, revealing that it is on track for a profit boost and pointing to strong Galaxy S7 sales.
Samsung has reported that it expects operating profit of approximately 8.1 trillion Korean won (around $9.34 billion), up from 6.9 trillion won year-on-year and 6.7 trillion won in the first quarter.
As reported by Reuters, this tops an average forecast of 7.8 trillion won by a Thomson Reuters survey of 16 analysts, with it being the highest since an 8.5 trillion won profit in the 2014 first quarter.
Samsung has reported that sales will come in at approximately 50 trillion won, up from 48.5 trillion won year-on-year and 49.8 trillion won in the first quarter.
All of which indicates that the S7 is delivering for Samsung.
It’s been a strong start to the year for Samsung, which posted a 5.7 per cent year-on-year rise in revenue and a 12 per cent year-on-year rise in operating profit in the first quarter, noting at the time the role of the S7 and S7 edge in earnings growth.
The S7 and S7 edge launched in March, with Samsung stating on release of its first quarter results that its IT & Mobile Communications division year-on-year earnings improvement was “mainly driven by the early launch of Galaxy S7”.
While Samsung’s guidance does not provide results by segment, S7 sales have apparently kept ticking over.
Reuters has reported some analysts as stating that Samsung shipped about 16 million S7s in April-June, with the S7 edge outselling the S7 and boosting margins.