Samsung announced its Q1 2022 earnings estimates earlier today. Thanks to solid gains through semiconductor chip and smartphone sales, the South Korean tech giant expects to post its highest Q1 earnings since 2018.
In its earnings guidance, the company said that it expects its revenue to reach up to KRW 78 trillion (around $64 billion) and operating profit to reach KRW 14.1 trillion (around $11.5 billion). The revenue is up by 17.7%, and its operating profit is around 50.3% higher compared to Q1 2021. The company’s income estimates beat the market consensus, which was around KRW 13.2 trillion.
Compared to Q4 2021 figures, where Samsung’s revenue was KRW 76.57 trillion and operating profit was KRW KRW 13.87 trillion, the company sales increased by 1.66% and profit increased by 0.56%. The semiconductor business is expected to bring KRW 25 trillion in sales and KRW 8 trillion in operating profit.
The company did not break down its earnings, but it is expected to reveal detailed figures sometime later this month. Apart from its chip business, Samsung’s high-end TVs, home appliances, and smartphones appear to have done well in Q1 2022. Sales of the Galaxy S22 series reached a record high in the past few years and pre-orders were doubled compared to the Galaxy S21 series.
Analysts expect the company’s growth to be stable for the remainder of the year as chip prices are expected to rebound. Samsung will likely not be affected by geopolitical factors like the ongoing Russia-Ukraine war. The company seems to have a diversified raw material supply chain, and its factory in Russia appears to be working normally.
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