- Samsung said its operating profit for the quarter ended September rose 28% from a year earlier to 15.8 trillion korean won ($13.26 billion).
- This is set to be Samsung’s best quarterly profit in three years – since the third quarter of 2018 when Samsung posted a profit of more than 17.5 trillion won.
- Still, Friday’s figure fell below analysts’ estimate of 16.1 trillion wins, according to Refinitiv SmartEstimate.
Shares of Samsung Electronics rose on Friday after the company said its operating profit for the quarter ended September stood at 15.8 trillion Korean won ($13.26 billion), up 28% from a year earlier.
This is set to be Samsung’s best quarterly profit in three years – since the third quarter of 2018 Samsung earned a profit of more than 17.5 trillion won.
Still, Friday’s figure fell below analysts’ estimate of 16.1 trillion wins, according to Refinitiv SmartEstimate.
Samsung shares rose more than 1% in early trading, but eventually pared some of those gains to trade 0.42% higher.
Consolidated sales for the quarter likely rose to a record high of ₹73 trillion — 9% from a year ago.
The South Korean tech giant didn’t break down how each business unit fared, including its main profit-making semiconductor business.
But operations of the world’s largest smartphone and chipmaker have been hit by global chip shortages and the coronavirus pandemic. closed some of its factories around the world.
“Both revenue and operating profit [are] SK Kim, Executive Director and Senior Analyst, Daiwa Capital Markets, said, “Our estimates are lower than the market estimates.”
Samsung was partially affected by semiconductor shortages, particularly in its smartphone business, and faced some logistics problems for its consumer electronics unit, Kim said Friday on Businesshala’s “Squawk Box Asia.” But rising semiconductor prices is likely to have a positive impact on Samsung’s parts business.
Daiwa has a price target of 110,000 Won (about $92) per share for Samsung, up more than 53% from Thursday’s close, as it expects higher semiconductor prices to boost the tech company’s earnings.
Chip shortages have begun to plague the smartphone industry, where the likes of Samsung and Apple had hitherto been shielded from decline by stockpiling critical components such as memory chips.
At the end of last month, Counterpoint Research lowers its smartphone shipment forecasts For the second half of 2021, it said some smartphone makers are struggling to get all the components ordered to make the smartphone.
Full results for the September quarter are due later this month.
Samsung shares are down more than 11% year-over-year.