Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Samsung to Have Strong Third-quarter Earnings in the Semiconductor Biz

IANS
IANS
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

Analysts said that Samsung Electronics Co. is expected to report strong third-quarter earnings on the back of its semiconductor business and a weak won.

The South Korean tech giant was projected to log 16.3 trillion won ($13.8 billion) in operating profit for the July-September period, up 31.9 percent from a year earlier. In comparison, its sales were forecast to increase 12.2 percent on year to 75.1 trillion won over the period, according to the data from nine local brokerage houses compiled by Yonhap Infomax, reports Yonhap News Agency.

Compared with the previous quarter, Samsung’s third-quarter operating profit and sales were estimated to increase 29.7 percent and 18 percent, respectively.

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

Analysts predict Samsung’s semiconductor business once again anchored the company’s performance in the third quarter thanks to price hikes in memory chips and enhanced yield rates.

They expected Samsung’s chip business to log around 10 trillion won in operating profit for the third quarter.

Earlier this month, market researcher IC Insights predicted Samsung could log $22.32 billion in semiconductor sales in the third quarter and defend its status as the world’s biggest chip seller.

“For its chip business, profitability improvement through cost reductions played a big part,” said Kim Kyung-min, an analyst at Hana Financial Investment.

“That is possible due to enhanced yield of advanced nodes in the non-memory sector and cost reductions efforts in the 15-nanometer DRAM and 128-layer NAND flash products.”

With a strong chip business, analysts said the weak Korean won in the third quarter would have also contributed to Samsung’s third-quarter performance.

Analysts also expected improved earnings from Samsung’s display business due to seasonality and may post better than the second quarter when a one-time gain is reflected.

They estimated the display unit to log around 1.5 trillion won in operating profit

Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Join 10,000+ Fellow Readers

Get Techgenyz’s roundup delivered to your inbox curated with the most important for you that keeps you updated about the future tech, mobile, space, gaming, business and more.

Recomended

Find Apps

The Ultimate Hub for Discovering Apps Unlock a world of apps: your ultimate hub for exploring and discovering limitless possibilities for on your every needs.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic