According to a new analyst report, Samsung is gearing up to announce its most profitable quarter in the past 3 years. Thanks to rising memory chip prices and surging sales of its new foldable smartphones, Samsung may also report a record revenue.
The latest Refinitv report (via Reuters) produced by 16 analysts showed that Samsung’s operating profit has likely jumped to $14 billion in the third quarter of 2021 (ended in September). This would be a massive 30% increase over the same quarter last year, and also the highest quarterly profit since 2018.
An unprecedented global shortage of chips amid the pandemic hiked the demand for semiconductors over the past 2 years, which fueled Samsung’s profits and shares significantly. The company’s results improved by 45% last year and hit a record high at the beginning of 2021.
The stocks, however, have dropped since then due to the company’s losses in September caused by a decline in memory chip shipments. Industry analysts had warned that chip prices will soar in the July – September period before plummeting soon afterward.
Samsung’s shares declined a little after Micron’s guidance report but analyst Lee Soon-hak commented that:
Unlike Micron, Samsung internalises major components … and has other businesses like mobile and foundry to buoy performance.
Samsung is expected to announce its preliminary results on Friday and that is when we will get to see how accurate the analyst reports are.