Samsung Electronics flags record Q3 operating profit

phys.org | 10/5/2018 | Staff
bethtetleybethtetley (Posted by) Level 4
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Samsung Electronics Friday forecast a record operating profit of 17.5 trillion won ($15.4 billion) in the third quarter led by solid demand for its memory chips.

Sales for July to September are expected to reach 65 trillion won, the world's largest maker of smartphones and memory chips said in a regulatory filing.

Earnings - Forecast - Electronics - Beat - Market

The earnings forecast from the South Korean electronics giant beat market consensus of about 17.2 trillion won according to market researcher FnGuide, with analysts expecting a jump in profits on a strong performance by the company's semiconductor unit.

Third-quarter operating profit was up 20.4 percent from a year ago while sales jumped by 4.7 percent.

Operating - Profit - Peak - Greg - Roh

"Operating profit seems to be at its peak now," Greg Roh, an analyst at Hyundai Motor Securities, told Bloomberg News.

"Early next year might be the right time to buy Samsung before growth picks up again in the bottom half of next year," he added.

Samsung - Shares - Percent - Trading - Seoul

Samsung shares rose as much as 1.8 percent in early trading in Seoul.

Samsung withholds net profit and sector-by-sector business performance until it releases its final earnings report, which is expected later this month.

Tech - Giant - Profits - Years - Thanks

The South Korean tech giant has seen profits soar in recent years largely thanks to solid demand for memory chips for mobile devices which has helped offset weakening profits from its own mobile production.

Samsung's chipmaking unit—currently dominating the global market after the firm invested tens of billions of dollars each year to build and expand factories—provides chips for its own devices as well as those of competitors including Apple.

Concerns - Chip - Prices

But there are growing concerns over declining chip prices.

The price of DRAM products—used in mobile devices, servers and PCs—is expected to see a sharp drop of five percent in the fourth quarter from the previous quarter on slowing demand, said TrendForce, a market research firm that tracks memory chip pricing.

DRAM - Products

"DRAM products have begun to...
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