SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Notifications
    News For You

    Samsung forecasts 57.6% profit jump in Q1 2018

    Business
    By 

    Last updated: April 6th, 2018 at 08:47 UTC+02:00

    Market analysts predicted that when Samsung will announce its earnings guidance for the first quarter of this year, it will forecast an almost 50 percent increase in profit for the quarter. Samsung has officially released its Q1 2018 earnings forecast today and the company has beat market expectations. It forecasts a 57.6 percent jump in profit this quarter compared to the same period last year.

    A healthy 57.6% surge in profit

    Thomson Reuters polled financial analysts earlier this week and they expected that Samsung will post an operating profit of $13.7 billion in Q1 2018 with the semiconductor business accounting for almost three-quarters of that. Samsung's expects to post $14.7 billion in profit for the quarter which is a 57.6 percent jump compared to the $8.7 billion operating profit it posted in Q1 2017. It expects revenue for the quarter to touch almost $56 billion.

    Samsung has not released performance and division-wise figures so far as that will happen later this month when it reports the full results for the period ending March 2018. However, as expected, the company's semiconductor division has put it on the path to a very profitable year in 2018 as well. The company has benefitted from rising prices for memory chips and the fact that it's the dominant supplier of these chips. Analysts predict that Samsung makes 70 cents in operating profit for every $1 of DRAM chips sold.

    There were some concerns in the market that the gains made by the semiconductor division would be offset by losses at its display business which has reportedly been impacted by Apple's decision to cut iPhone X production in half due to sluggish sales. However, that does not appear to be the case.

    Even though the forecast looks good on paper the response from the market has been muted, Samsung's shares actually fell after the earnings forecast was released. It simply confirms the notion that Samsung is heavily relying on its semiconductor business to bring in a major chunk of its profits. Analysts forecast similar or lower profit for Samsung in the second quarter as memory chip prices are expected to fall and Samsung may also incur higher marketing costs for the Galaxy S9.

    Samsung will report the full earnings result for the first quarter of this year towards the end of April.

    Source Business Earnings
    Galaxy AI summarized

    Scroll for more related content
    News For You

    You might also like

    Samsung’s battery sales decline despite higher EV business

    Samsung’s battery sales decline despite higher EV business

    Samsung has a battery manufacturing division called Samsung SDI, which makes batteries for products ranging from smartphones to EVs. Earlier today, Samsung SDI announced its financial results for Q1 2024. The company's sales have fallen despite higher EV business, but the company vows to become a “global top-tier company by 2030.” Samsung SDI profits fall […]

    • By Asif Iqbal Shaik
    • 1 month ago
    Samsung profit jumps 933% to $4.8 billion in Q1 2024, beating estimates

    Samsung profit jumps 933% to $4.8 billion in Q1 2024, beating estimates

    Samsung has revealed its financial results for the first quarter of this year, a few weeks after revealing revenue estimates. The company revealed that its revenue rose 13% compared to Q1 2023, while its profit skyrocketed nearly 10x (933%) compared to the year earlier. Samsung's profit jumps nearly 10x in Q1 2024, thanks to strong […]

    • By Asif Iqbal Shaik
    • 1 month ago
    Samsung’s profit rises by 931% in Q1 2024 as chip sales recover

    Samsung’s profit rises by 931% in Q1 2024 as chip sales recover

    Samsung has been struggling over the past couple of years, especially due to its most important product: memory chips. However, things now seem to be improving financially, as the company has reported a huge rise in its profit. Earlier today, Samsung revealed its earnings guidance for Q1 2024. Samsung's profit rises 931% on the back […]

    • By Asif Iqbal Shaik
    • 2 months ago
    Samsung expects its 2023 profit to drop by 85% compared to last year

    Samsung expects its 2023 profit to drop by 85% compared to last year

    Last year was extremely challenging for Samsung, as smartphone and semiconductor chip sales were quite low. Those are the two most important product categories for Samsung. However, the company and even analysts expect this new year to be much better as sales are recovering. Today, Samsung Electronics posted its earnings guidance for the fourth quarter […]

    • By Asif Iqbal Shaik
    • 5 months ago
    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Samsung reports best quarterly profit of 2023, thanks to displays and foldables

    Three weeks after revealing its earnings guidance, Samsung Electronics revealed its full earnings data for Q3 2023. The South Korean firm's revenue was KRW 67.4 trillion (around $49.86 billion) during the July-August period, and its operating profit was KRW 2.43 trillion (around $1.79 billion). That's the highest quarterly profit the company achieved this year, and […]

    • By Asif Iqbal Shaik
    • 7 months ago
    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung reports low profits for Q3 2023 as semiconductor chip losses narrow

    Samsung has been going through tough times due to the downturn of the semiconductor chip segment, leading to huge losses for the company. However, it looks like the company is recovering from that downturn and narrowing losses in its semiconductor chip business. Samsung has reported earnings guidance for Q3 2023, revealing better-than-expected results. Its profits […]

    • By Asif Iqbal Shaik
    • 8 months ago