Trending

Stories

Samsung Set to Log Strong Q2 Earnings on-chip Biz: Analysts

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

WP Rocket - WordPress Caching Plugin

Must Read

Samsung Electronics is expected to report strong second-quarter earnings on the back of its semiconductor business that offset a lukewarm performance of the mobile unit, analysts here said on Thursday.

The South Korean tech giant was projected to log 11.2 trillion won (US$9.9) billion in operating profit for the April-June period, up 37.6 percent from a year earlier. In comparison, its sales were estimated to increase 15.8 percent on year to 61.3 trillion won over the period, according to the data from 15 local brokerage houses compiled by Yonhap Infomax, the financial news arm of Yonhap News Agency.

Also Read

Its improvement may have been partly affected by a base effect. Still, according to analysts, Samsung’s second-quarter operating profit was estimated to be up 19.5 percent from the first quarter of 2021, although its revenue was projected to fall 6.2 percent.

Samsung, the world’s largest memory chip and smartphone producer, will announce its second-quarter earnings guidance next week.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

Analysts forecast that Samsung’s semiconductor business anchored the company’s performance in the second quarter thanks to price hikes in memory chips and the normalization of its foundry line in Austin, Texas.

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

Operating margins for both DRAM and NAND were estimated to have increased from the first quarter apparently due to a price increase, improved product mix, and yield rate, – Kim Un-ho, an analyst at IBK Investment & Securities. “Its Austin semiconductor fabrication plant shifting to the black also helped.

Analysts estimated Samsung’s DRAM average selling price increased by around 15 percent, while that of NAND went up around 3 percent in the second quarter.

Samsung suffered a month-long shutdown of its Texas fab after a severe snow storm caused power and water outages in February. It went back to full operations in April, but the company suffered more than 300 billion won in losses.

Samsung’s mobile business was predicted to report tepid earnings compared with the first quarter due to weak seasonality and the resurgence of COVID-19 in major markets, and chip shortages.

Analysts predict that Samsung’s IT & Mobile Communications unit will log around 3 trillion won in operating profit for the second quarter, with some expecting its smartphone shipments to decline more than 20 percent from a quarter earlier.

“There seems to have been a decline in demand in India, as well as its production disruption in Vietnam due to COVID-19, while a short supply of application processors for some smartphone models appear to have affected its performance,” said Lee Seung-woo, an analyst at Eugene Investment & Securities.

Earnings from Samsung’s Consumer Electronics (CE) division, which manages TVs and home appliances, were expected to be flat or slightly lower from the first quarter with around 1 trillion won in operating profit.

“Its TV sales may have declined slightly, but due to demand of seasonal home appliances, the CE unit is likely to report similar earnings like the first quarter,” said Lee Soon-hak, an analyst at Hanwha Investment & Securities.

Samsung’s display panel business was projected to report improved performance from the first quarter with an estimated 1 trillion won in operating profit when a one-off gain is reflected in its second-quarter earnings.

For Samsung’s earnings in the second half of the year, many analysts had a positive outlook with its semiconductor business again leading the way.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -
WhatsApp Introduces 5 New Features For Status Updates OnePlus First-ever Tablet Launching in India Today ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed  Samsung Galaxy S23 Ultra: The New Android King Twitter To End Free API February 9
WhatsApp Introduces 5 New Features For Status Updates OnePlus First-ever Tablet Launching in India Today ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed