Samsung’s third quarter 2021 profit forecast



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A South Korean flag, left, and a Samsung Electronics flag flutter in front of the company’s headquarters in Seoul, South Korea, July 5, 2019.

Jean Chung | Bloomberg | Getty Images

Shares of Samsung Electronics rose slightly on Friday after the company said its operating profit for the quarter ended in September was likely 28% higher than a year ago, at 15.8 trillion Korean won. ($ 13.26 billion).

This is expected to be Samsung’s best quarterly profit in three years – since the third quarter of 2018, when Samsung posted a profit of more than 17.5 trillion won.

Still, Friday’s figure fell below analysts’ estimates of 16.1 trillion won, according to Refinitiv SmartEstimate.

Samsung shares rose more than 1% at the start of trading, but eventually reduced some of those gains to trade 0.42% higher.

Consolidated sales for the quarter likely reached a record high of 73 trillion won, up 9% from a year ago.

The South Korean tech giant did not detail the performance of each business unit, including its main lucrative semiconductor business.

But the operations of the world’s largest smartphone and chip maker have been affected by a global chip shortage and the coronavirus pandemic that has shut down some of its factories around the world.

“Turnover and operating profit [are] lower than our estimate and the market estimate, ”said SK Kim, Executive Director and Senior Analyst at Daiwa Capital Markets.

Samsung has been partially affected by the semiconductor shortage, particularly in its smartphone business, and has likely encountered logistics issues for its consumer electronics unit, Kim said on CNBC’s “Squawk Box Asia” Friday. . But rising semiconductor prices have likely had a positive impact on Samsung’s components business, he added.

Daiwa has a price target of 110,000 won (about $ 92) per share for Samsung, which implies a rise of more than 53% from Thursday’s close as he expects prices to be higher. Semiconductors Boost Tech Company Profits.

The chip shortage is starting to affect the smartphone industry where Samsung and Apple had so far been shielded from the fallout by stocking critical components such as memory chips.

At the end of last month, Counterpoint Research lowered its smartphone shipping forecast for the second half of 2021, saying some smartphone makers are struggling to receive all of the components they have ordered to make smartphones.

Full September quarter results are expected later this month.

Samsung shares are down more than 11% since the start of the year.

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