Samsung Electronics is prone to flip in its finest quarterly revenue in three years and a file income, 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 possible jumped to KRW 16.1 trillion (roughly Rs. 10,000 crores) within the quarter ended September, in response to a Refinitiv SmartEstimate from 16 analysts, weighted towards those that are extra constantly correct.
That will be up 30 p.c from KRW 12.35 trillion (roughly Rs. 77,300 crores) a yr earlier and the very best for the reason that third quarter of 2018. Income possible rose 11 p.c to 74.6 trillion received (roughly Rs. 4,67,000 crores), a file excessive.
An unprecedented world scarcity in semiconductor chips amid the pandemic has underpinned Samsung’s outcomes and shares, which soared 45 p.c final yr and hit a file excessive at the beginning of 2021.
However the inventory has dropped since then, compounded by losses in September when US 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 elements … and has different companies like cellular and foundry to buoy efficiency,” stated Hanwha Funding & Securities analyst Lee Quickly-hak.
“Reminiscence (chip) costs are seen rebounding subsequent yr after a brief interval of decline,” Lee added.
Samsung will announce preliminary outcomes on Friday.
Chip division, smartphones
Samsung’s chip division is prone to report an working revenue of KRW 9.9 trillion (roughly Rs. 61,970 crores), a mean of six analysts’ forecasts exhibits, up 79 p.c from a yr earlier, helped by rising reminiscence chip costs and shipments.
Costs of DRAM chips, utilized in servers, cellphones and different computing units, jumped 7.9 p.c versus the June quarter, whereas these of NAND flash chips that serve the information storage market rose 5.5 p.c, information 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 cellular division possible noticed about KRW 3.7 trillion (roughly Rs. 23,160 crores) in working income, analysts stated, down from KRW 4.45 trillion (roughly Rs. 27,840 crores) a yr earlier however up from the prior quarter’s KRW 3.2 trillion (roughly Rs. 20,020 crores) on foldable smartphones gross sales.
An estimated 2 million Galaxy Z Fold 3 and Z Flip 3 fashions have been offered in a month since launching in late August, with South Korea topping gross sales adopted by america, stated Jene Park, senior analysis analyst at Counterpoint.
Market contributors shall be scouring Samsung’s full outcomes later this month for an replace on its deliberate $17 billion (roughly Rs. 1,26,800 crores) US semiconductor manufacturing facility after sources stated it was drawing nearer to finalising the development.
© Thomson Reuters 2021