Samsung Electronics Co Ltd is more likely to flip in its finest quarterly revenue in three years and a file revenue, on rising reminiscence chip costs and brisk gross sales of its new foldable smartphones, analysts’ estimates present.
Working revenue for the world’s greatest reminiscence chip and smartphone maker doubtless jumped to 16.1 trillion received ($14 billion) within the quarter ended September, in line with a Refinitiv SmartEstimate from 16 analysts, weighted towards those that are extra constantly correct.
That may be up 30% from 12.35 trillion received a 12 months earlier and the best for the reason that third quarter of 2018. Income doubtless rose 11% to 74.6 trillion received, a file excessive.
An unprecedented world scarcity in semiconductor chips amid the pandemic has underpinned Samsung‘s outcomes and shares, which soared 45% final 12 months and hit a file excessive initially of 2021.
However the inventory has dropped since then, compounded by losses in September when U.S. peer Micron warned its reminiscence chip shipments would slip within the close to time period, amid trade views that chip costs will tumble after peaking in July-September.
“Samsung shares have fallen as a consequence of Micron’s steerage however in contrast to Micron, Samsung internalises main parts … and has different companies like cell and foundry to buoy efficiency,” mentioned Hanwha Funding & Securities analyst Lee Soon-hak.
“Reminiscence (chip) costs are seen rebounding subsequent 12 months after a brief interval of decline,” Lee added.
Samsung will announce preliminary outcomes on Friday.
CHIP DIVISION, SMARTPHONES
Samsung’s chip division is more likely to report an working revenue of 9.9 trillion received, a median of six analysts’ forecasts exhibits, up 79% from a 12 months earlier, helped by rising reminiscence chip costs and shipments.
Costs of DRAM chips, utilized in servers, cell phones and different computing gadgets, jumped 7.9% versus the June quarter, whereas these of NAND flash chips that serve the info storage market rose 5.5%, knowledge from analysis supplier Trendforce exhibits.
Analysts additionally forecast a double-digit working margin for Samsung’s chip contract manufacturing enterprise as purchasers rush to safe manufacturing capability.
Its cell division doubtless noticed about 3.7 trillion received in working earnings, analysts mentioned, down from 4.45 trillion received a 12 months earlier however up from the prior quarter’s 3.2 trillion received on foldable smartphones gross sales.
An estimated 2 million Galaxy Z Fold 3 and Z Flip 3 fashions have been bought in a month since launching in late August, with South Korea topping gross sales adopted by the USA, mentioned Jene Park, senior analysis analyst at Counterpoint.
Market members shall be scouring Samsung’s full outcomes later this month for an replace on its deliberate $17 billion U.S. semiconductor manufacturing unit after sources mentioned it was drawing nearer to finalising the development.