Samsung revenue guidance for the third quarter of 2021

Texas News Today

The South Korean flag (left) and the Samsung Electronics flag are hoisted outside the headquarters in Seoul, South Korea on July 5, 2019.

Gene Chung | Bloomberg | Getty Images

The share price of Samsung Electronics announced Friday that operating profit could rise 28% year-on-year to 15.8 trillion won ($13.26 billion) for the quarter ended September. Rose.

This is expected to be Samsung’s highest quarterly profit in three years as Samsung won over 17.5 trillion won in profits in the third quarter of 2018.

Still, Friday’s numbers fell well below analysts’ estimated 16.1 trillion wins, according to Refinitiv SmartEstimate.

Samsung’s share price rose more than 1% in early trading, but some of it eventually traded as high as 0.42%.

Consolidated sales for the quarter hit a record high of 73 trillion wins, a 9% increase from a year ago.

The South Korean tech giant didn’t analyze the performance of every business unit, including the semiconductor business, which generates huge profits.

However, the operations of the world’s largest smartphone and chip makers have been hit by global chip shortages and a coronavirus pandemic that has shut down many factories around the world.

“Both revenue and operating profit” [are] SK Kim, Managing Director and Senior Analyst, Daiwa Capital Markets said:

Samsung is likely to face logistics problems in the consumer electronics sector, partly fueled by shortages in semiconductors, particularly in the smartphone business, Kim told CNBC’s Squawkbox Asia on Friday. .. However, rising semiconductor prices are likely to have a positive impact on Samsung’s parts business.

Daiwa has set a price target of 110,000 Won (about $92) per share for Samsung, and expects the increase in semiconductor prices to boost profits for high-tech companies, so it will increase by more than 53% from closing price. . on Thursday. it means that.

Chip shortages have begun to plague the smartphone industry, where Samsung, Apple and others have traditionally been shielded from decline by stockpiling critical components such as memory chips.

Counterpoint Research late last month lowered its smartphone shipment forecast for the second half of 2021, saying some smartphone makers are struggling to get all the components ordered to make their smartphones.

Full results for the September quarter are expected by the end of this month.

Samsung shares are down more than 11% year-over-year.

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