Samsung Expects Continued Chip Boom After Quarter Two Profit
Samsung Electronics Co. Ltd. this week claimed that it anticipated the memory chip growth to persist in the present quarter. The anticipation came after posting a record working profit for the 3 Months till June.
The biggest manufacturer of smartphones, memory chips, and television sets in the world is broadly anticipated to cross profit records for the whole year. This is due to the “better than forecast” performance in its mobile sales that lifted quarterly working profit a little above its last quarter, experts claimed to the media in an interview.
The company this week also declared its 3rd share buyback of the year as division of the 9.3 Trillion Won yearly total that it pledged in January. The 3rd share buyback was valued at 1.7 Trillion Won ($1.53 Billion) of common stakes. It also declared the termination of its own shares worth 2 Trillion Won.
“Moving forward to the quarter three, the firm anticipates constructive semiconductor circumstances to continue, even though total earnings may reduce as compared to previous quarter to some extent. This is due to the fact that earnings deteriorate for the mobile businesses and display panel,” the third most-valuable company of Asia by market worth said to the media in a statement.
Experts on the other hand predict earnings of quarter three to go beyond the earning of quarter two on the basis of the supposed super-cycle of memory chip.
“We believe that over 15 Trillion Won (in profit of quarter three) is more than achievable,” claimed analyst at HMC Investment & Securities, Greg Roh, to the media in an interview.
“The mobile sale might be a little weaker in the quarter three due to the fact that the anticipated sale from supply of Organic Light-Emitting Diode (OLED) display to Apple Inc is seen to be mirrored in earnings commencing in the quarter three even though quarter two was strong,” he further added.
Working profit grew by 72.7% to 14.1 Trillion Won in the quarter two as compared to the same period a year ago, Samsung said to the media in a regulatory filing.
Revenue grew to 61 Trillion Won by 19.8%, also in line as compared to the same period a year ago. The chip sale was top earner of Samsung as profit grew from 2.6 Trillion Won to a record 8 Trillion Won in the quarter two of last year. Client demand for more influential gadgets and supply checks are pushing up costs of both NAND and DRAM memory chips.