Samsung Electronics likely to report best quarterly profit in 3 years

• ByAyushi Ray     |    October 6, 2021

Samsung Electronics likely to report best quarterly profit in 3 years. 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 U.S. 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 internalises major components … and has other businesses like mobile and foundry to buoy performance,” said Hanwha Investment & Securities analyst Lee Soon-hak.”Memory (chip) prices are seen rebounding next year after a short period of decline,” Lee added.Samsung will announce preliminary results on Friday.

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