PREVIEW-Samsung most likely to article 35% surge in Q3 income as smartphone sales recover

By Joyce Lee SEOUL, Oct 7 (Reuters) – Samsung Electronics Co Ltd’s 005930.KS September-quarter earnings probable surged far more than a third, fuelled by solid smartphone sales and a hurry buy of memory chips from Huawei Systems Co Ltd HWT.UL, analysts reported. Samsung, the world’s most important memory chip provider, […]

By Joyce Lee

SEOUL, Oct 7 (Reuters)Samsung Electronics Co Ltd’s 005930.KS September-quarter earnings probable surged far more than a third, fuelled by solid smartphone sales and a hurry buy of memory chips from Huawei Systems Co Ltd HWT.UL, analysts reported.

Samsung, the world’s most important memory chip provider, is scheduled to announce preliminary July-September operating earnings and earnings on Thursday.

Profit likely rose 35% to 10.5 trillion received ($9.07 billion) from the similar interval a yr previously, according to Refinitiv SmartEstimate, derived from analyst estimates weighted toward those people a lot more continuously accurate. Profits probably rose 3%.

While Samsung’s overall chip small business was muted, analysts claimed orders from Chinese smartphone maker Huawei probable propped up product sales. Huawei is most likely to have created stockpiles right before U.S. sanctions from mid-September prevented it from acquiring chips produced using U.S. technological innovation with no a license, analysts mentioned.

Last calendar year Samsung’s chip business enterprise accounted for roughly fifty percent of its financial gain.

U.S. rival Micron Engineering Inc MU.O posted market-beating revenue past month, very likely assisted by Huawei’s hurry to protected stock, analysts reported.

“Huawei’s crisis orders from late August drove up Samsung’s DRAM and NAND chip shipments, offsetting the impact of weak prices and limiting the drop in semiconductor income for the quarter,” said analyst Music Myung-sup at Hi Expenditure & Securities.

Price ranges of DRAM chips, which allow gadgets to multi-process, and of NAND chips, which retail outlet information, fell in July-September, confirmed DRAMeXchange facts.

Samsung’s smartphone profit, which accounted for one-third of earnings previous year, most likely jumped as handset desire rebounded right after the COVID-19 pandemic curbed revenue in the initially fifty percent of 2020. Third-quarter smartphone shipments probable rose 48% to 80 million from the second quarter, in accordance to analysts and data from Counterpoint Exploration.

Earnings at Samsung’s exhibit company likely fell, damage by a later-than-envisioned start of shopper Apple Inc’s AAPL.O new Iphone. Having said that, earnings from tv sets and household appliances likely rose as Samsung sold additional gizmos on line and cut operating expenditures, analysts mentioned.

Samsung is scheduled to release detailed earnings figures later on this month.

($1 = 1,157.0400 gained)

(Reporting by Joyce Lee Editing by Sayantani Ghosh and Christopher Cushing)

(([email protected] +82 2 6936 1467))

The sights and views expressed herein are the sights and opinions of the author and do not necessarily reflect people of Nasdaq, Inc.

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