Samsung Electronics Co. is predicted to have earned greater than $8 billion in working revenue within the first quarter, higher than earlier estimates due to the brisk international gross sales of its smartphones, TVs and different high-end electronics that greater than offset losses from chip enterprise.
A consensus estimate compiled by Seoul-based monetary market tracker FnGuide confirmed Monday that the South Korean tech behemoth is projected to have raked in 8.8 trillion received ($7.8 billion) in working revenue for the January-March interval on gross sales of 60.8 trillion received. That will be 37 % and 9.91 % larger, respectively, from the identical interval a 12 months earlier.
The projection is up by greater than 500 billion received, for each working revenue and gross sales, in contrast with their earlier projections made a month in the past.
Samsung Electronics is because of launch its preliminary earnings report for the primary quarter on Wednesday.
Some native analysts forecast the corporate’s working revenue to high 9 trillion received within the quarter. Hello Funding & Securities estimated 9.5 trillion received, whereas a number of different native securities companies projected comparable or a bit bit smaller – Cape Funding & Securities 9.3 trillion received, Samsung Securities and Eugene Funding & Securities 9.2 trillion received, and Shinhan Funding 9 trillion received.
Their upbeat outlook is especially based mostly on the brisk gross sales of the corporate’s TVs, premium home equipment and newest smartphone collection that greater than offset losses from its chip enterprise within the quarter.
“The corporate’s chip division could report weak numbers because of the manufacturing setback in Texas attributable to uncommon winter storm and the slower than anticipated rise in common promoting worth however the cell operation ought to have made up for the losses with strong gross sales and operational value minimize,” mentioned Track Myung-seop, analyst at Hello Funding & Securities.
Analysts from international securities companies projected even stronger first-quarter efficiency for Samsung Electronics. Estimates drawn from 16 analysts by Reuters confirmed that the electronics large more likely to see a forty five % on-year bounce in revenue within the first quarter. That will make Samsung Electronics report 9.3 trillion received in working revenue, the very best because the first quarter of 2018.
The consensus estimates for the gross sales was 61.96 trillion received, up 12 % on 12 months due to sturdy gross sales of smartphones, TVs and residential home equipment.
In line with Couterpoint Analysis, Samsung Electronics occupied 23 % of the worldwide smartphone market within the first quarter, up 3 share factors from a 12 months in the past. The corporate’s smartphone division is predicted to have generated 4.15 trillion received revenue, as its new flagship Galaxy S21 collection have fared effectively since its launch in mid-January whereas high-profit equipment together with Buds wi-fi earphones confirmed sturdy gross sales progress.
Income from TV and residential equipment operations are estimated at 1 trillion received, greater than doubled in comparison with a 12 months in the past, propelled by the revived shopper demand.
The mainstay semiconductor division is probably going have recorded 3.6 trillion received for the first-quarter revenue, down 20 % on 12 months, largely because of the manufacturing suspension at its manufacturing facility in Texas, the U.S. attributable to an uncommon winter storm. Its manufacturing facility has returned to regular manufacturing since late March, in response to the corporate.
The rosy earnings outlook is lifting up the corporate’s shares. The inventory is buying and selling flat at 85,400 received, as of 10:51 a.m. in Seoul on Tuesday after closing the day 0.71 % larger. It has been hovering round 82,000 received for months after slipping from the intraday peak of 96,800 received on Jan. 11.
By Kim Ki-chul and Cho Jeehyun
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