Samsung Electronics Poised For Best Quarterly Profit In 3 Years

Samsung Electronics is likely to turn in its best quarterly profit in three years and record revenue, on rising memory chip prices and brisk sales of its new foldable smartphones, analysts' estimates show, Joyce Lee reported for Reuters.

Photo Insert: The Samsung Town, Seoul, South Korea

Operating profit for the world's biggest memory chip and smartphone maker likely jumped to 16.1 trillion won ($14 billion) in the quarter ended September, according to a Refinitiv SmartEstimate from 16 analysts, weighted toward those who are more consistently accurate.

That would be up 30% from 12.35 trillion won a year earlier and the highest since the third quarter of 2018. Revenue likely rose 11% to 74.6 trillion won, a record high. An unprecedented global shortage in semiconductor chips amid the pandemic has underpinned Samsung's results and shares, which soared 45% last year and hit a record high at the start of 2021.

But the stock has dropped since then, compounded by losses in September when US peer Micron warned its memory chip shipments would slip in the near term, amid industry views that chip prices will tumble after peaking in July-September.

"Samsung shares have fallen due to Micron's guidance but unlike Micron, Samsung internalizes major components ... and has other businesses like mobile and foundry to buoy performance," said Hanwha Investment & Securities analyst Lee Soon-hak.

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