Samsung To Reveal Record Profit Forecast
Recent reports reveal Samsung Electronics is set to forecast a record third-quarter profit on Friday, following strong sales of memory chips and its new flagship phone the ‘Galaxy Note 8′.
Thomson Reuters’ latest survey – comprised of 19 analysts – forecasts Samsung’s July-September operating profit will jump to US$12.51 billion (14.3 trillion won), notably three times that posted a year earlier, and slightly higher than the previous quarter (14.1 trillion won).
The South-Korean company is close to its highest ever market valuation, following nearly a 50% increase in its share price so far this year.
The company’s mobile earnings have reportedly bounced back since 2016’s expensive Note 7 market withdrawal.
Samsung’s Note 8 pre-orders notched the highest-ever received for the Note series.
The current tech landscape has seen mobile devices and servers demand greater processing power – a need Samsung has greatly benefited from, as it is heralded the globe’s largest manufacturer of memory chips.
Data provider, DRAMeXchange (a division ofTrendForce), states global demand for DRAM chips will continue to beat supply in 2018. Demand for NAND flash chips outpaced supply for six consecutive quarters, as of last month
Analyst such as Mirae Asset Daewoo Securities’, Doh Hyun-woo, states of Samsung’s upcoming forecast:
“Fourth-quarter earnings will improve across the board and keep improving in 2018″
Though Hyun-woo did add, “Samsung’s valuation is still comparatively lower than global competitors”.
Samsung’s display business is tipped to improve in the fourth quarter, following sales of OLED panels used in Apple’s latest smartphones. Analysts expect, however, LCD panel prices to weigh on the company’s display business during the third quarter.
On Friday, the South-Korean tech giant will offer estimates for its July-September revenue and operating profit and will release detailed results in late October.
Rival, Apple Inc, is also set to issue its earnings guidance on Friday.