By Kwanwoo Jun

Samsung Electronics is scheduled to report preliminary second-quarter results on Tuesday. Here is what you need to know:

OPERATING PROFIT: The South Korean technology giant is expected to post an operating profit of 6.359 trillion won, equivalent to $4.67 billion, for the three months ended June, according to a FactSet-compiled consensus estimate of 31 analysts. That would be a nearly 40% drop from the same period a year earlier.

REVENUE: The company's quarterly revenue is forecast to have risen 2.5% to 75.941 trillion won.

Shares in Samsung closed 2.5% lower at 61,700 won on Monday, trimming its year-to-date gains to 16%.

WHAT TO WATCH:

--DOWNBEAT MARKET VIEWS: Investors are waiting to see whether Samsung's preliminary earnings align with somewhat downbeat street forecasts. A number of analysts have recently cut their operating profit estimates for the company, citing expectations of a weak recovery in its flagship chip-making business.

--HBM CHIPS: A delay in Samsung's supply of advanced high-bandwidth-memory products to Nvidia likely continued to weigh on its DRAM segment, according to some analysts. The company said during its first-quarter earnings call that it expected sales of HBM products to recover from the second quarter, but it has yet to confirm any shipments of new 12-layer HBM3E products to Nvidia, although it began supplying the chips to Advanced Micro Devices in June. Samsung's chronic losses in its contract chip-manufacturing business and logic chip-designing operation may have also pressured earnings, analysts said.

--TRADE UNCERTAINTY: Samsung's smartphone business, which had been strong enough in the first quarter to offset weakness in its semiconductor segment, faces headwinds from protectionist U.S. trade policies. President Trump has threatened to impose a new levy on smartphones shipped to the U.S. while preparing to slap trading partners with separate "reciprocal tariffs" if they fail to reach trade deals before the July 9 deadline.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

July 07, 2025 03:43 ET (07:43 GMT)

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