Samsung Electronics Set to Post Record Third-Quarter Operating Profit

Dow Jones
2 hours ago
 
 

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

 

OPERATING PROFIT FORECAST: The South Korean technology company is forecast to post a record quarterly operating profit of 108.489 trillion won, equivalent to $81.10 billion, for the three months ended September, almost nine times the year-earlier figure, according to a FactSet-compiled consensus estimate of 13 analysts.

 

REVENUE FORECAST: The company's quarterly revenue is expected to have more than doubled to 206.810 trillion won in the three months ended Sept. 30, according to FactSet.

Shares of Samsung Electronics have more than doubled so far this year, despite a third-quarter setback amid recurring investor concerns about the sustainability of the artificial-intelligence boom that has benefited chip makers.

 

WHAT TO WATCH:

--Investors will be watching whether Samsung's third-quarter operating profit will top 100 trillion won for the first time, extending its run of record quarterly earnings and surpassing its previous high of about 89 trillion won set in the second quarter.

--The won's sharp gains against the dollar will also be in focus. Analysts say Samsung's operating profit would have been higher without the currency's recent appreciation. Nomura estimates a 10% won gain could cut Korean chip makers' profits by 12%. FactSet data show the won has strengthened about 12% against the dollar over the past three months.

--The company doesn't typically provide segment breakdowns for its preliminary results, but analysts expect its semiconductor division to drive quarterly earnings, fueled by higher chip prices amid tight supply. Some estimate the division's operating profit at more than 110 trillion won, offsetting weakness in the home appliances, mobile devices and other nonchip businesses.

 
 

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