Samsung's third quarter results may be better than expected

12 September 2017, 08:42 | Technologies 
фото с InternetUA

Samsung Electronics, the world's largest manufacturer of memory chips and smartphones, in the third quarter of 2017 can surpass conservative analysts' forecasts and report better financial results than expected.

Pessimistic attitude of specialists was due to the fact that the market for displays, including LCD products and panels based on organic light-emitting diodes (OLED), was expected to fall prices.

Experts also said that in July-September, the growth of the financial indicators of Samsung could be almost zero, as in the previous quarter, the South Korean giant reported a record revenue and operating profit of 61 and 14.07 trillion won (53.9 and 12.4 billion US dollars ).

In addition, during a press conference on the results of the second quarter, Samsung itself warned about the possibility of reducing the indicators in the next three-month period.

Based on this, the South Korean financial news agency FnGuide slightly lowered the forecast for operating profit Samsung. However, in recent days, many market observers have begun to change the ratings for the better, noting the high demand for Samsung products, such as chips and OLED displays, which is observed against the release of new mobile devices and the upcoming release of the next generation of smartphones iPhone.

For example, Merit Securities analyst Kim Sun-woo believes that in the third quarter Samsung's revenue may reach 64.84 trillion won (57.3 billion dollars), while operating profit will increase to 14.35 trillion won ( 12.7 billion dollars).

"Cautionary forecast Samsung reflected the uncertainty in the market, but the high demand for computer chips and stable revenues from the sale of smartphones allow us to revise the estimate for the better", - commented the specialist correction.

A similar opinion is shared by eBEST Investment Securities specialist Eo Kyu-jin (Eo Kyu-jin). According to his calculations, Samsung's operating profit could reach 14.3 trillion won, and revenue will rise to 62.4 trillion won.

At the same time, the expert noted that Samsung's operating income in semiconductor business alone could reach 9.7 trillion won (8.6 billion dollars) thanks to better than expected prices for DRAM and NAND flash memory chips.

The most optimistic outlook for Samsung is estimated by Heungkuk Securities analysts - their forecast provides operating profit of 14.5 trillion won.

However, this is not the limit for Samsung, according to eBEST Investment and Dongbu Securities. According to their estimates, in the final quarter of 2017 the company will set a new record, bringing the operating profit to 16.5 or 15.5 trillion won (14.6 or 13.7 billion dollars).

Источник: InternetUA