Samsung’s preliminary quarterly profit reaches 107.4 trillion won
Samsung Electronics estimates third-quarter operating profit at 107.4 trillion won and revenue at 195 trillion won. Demand for memory used in artificial-intelligence infrastructure accompanies the increase, while analysts have cut some forecasts citing currency movements and employee incentives. The totals remain preliminary: net profit and the contribution of each business division will come with the final results later in October.
Economics & Markets··Morning
Profit and revenue rise in the preliminary quarter
South Korean electronics group Samsung Electronics estimates its July–September operating profit at 107.4 trillion won and revenue at 195 trillion won. The preliminary earnings announcement puts profit above 100 trillion won for the quarter. Samsung is due to publish final results later in October, including net profit and the breakdown by business division.[1], [2]
Operating profit increased 20.01 per cent from the preceding quarter. Revenue rose 13.70 per cent over that comparison and 126.59 per cent from a year earlier; year-earlier operating profit was 12.17 trillion won.[1]
Memory demand accompanies the earnings increase
Analysts link demand for memory chips to investment in artificial-intelligence infrastructure. Samsung supplies both ordinary memory and high-bandwidth memory used alongside demanding processors. Its semiconductor division accounted for roughly 99.7 per cent of profit in the preceding quarter, before the new period’s divisional results.[1]
Currency and incentives altered analysts’ estimates
Analysts cited the stronger won and employee incentive payments when reducing their estimates. Citi cut its operating-profit forecast from 115.5 trillion won to 104.1 trillion won, while Kiwoom lowered its estimate from 122 trillion won to 107 trillion won. Analysts also cited higher memory costs in Samsung’s consumer-electronics businesses.[1]
