SHANGHAI, CHINA – MARCH 14, 2024 – Guests check out the Galaxy S24 phones at SAMSUNG booth at AWE2024 in Shanghai, China, March 14, 2024.
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Samsung Electronics on Friday said it expects to put up a 931% raise in initially quarter functioning financial gain, as chip price ranges rebound.
Running gain in the January-March quarter possible rose to 6.6 trillion Korean won ($4.89 billion), up 931% from a calendar year ago, according to a preliminary statement. Revenue in the to start with quarter of 2023 was .64 trillion gained.
The income assistance for the 1st quarter of 2024 exceeds LSEG’s estimate of 5.24 trillion gained.
“We forecast Samsung Electronics will write-up reliable earnings for 1Q24 pushed by memory cost hikes and strong S24 revenue, beating industry estimates,” claimed SK Kim, executive director and analyst at Daiwa Securities in a March 27 report.
“We be expecting the sturdy AI-driven memory upturn cycle will travel earnings in 2024-25E,” reported Kim. Daiwa managed their “acquire” rating on Samsung Electronics and lifted value target to 110,000 received.
First quarter revenue possible rose 11.4% from the similar interval a 12 months ago to 71 trillion received, the agency said in a preliminary earnings statement. LSEG analysts expect earnings of 71.8 trillion gained.
Samsung is the world’s largest maker for dynamic random-access memory chips, which are located in purchaser equipment this sort of as smartphones and personal computers.
Memory chip prices fell drastically final 12 months, because of to extra inventories publish-Covid and weak demand from customers for conclusion items like smartphones and laptops.
In third-quarter earnings calls, the two Samsung and the world’s next-largest DRAM chip maker SK Hynix signaled that memory chip demand weak spot had ultimately bottomed out next generation cuts.
Earnings from the world foundry industry rose about 10% sequentially in the fourth quarter, according to Counterpoint Research’s Foundry Products and services. However, on a 12 months-on-12 months basis, profits fell 3.5% in the course of the 3-thirty day period time period.
“Irrespective of lingering macroeconomic uncertainties, the market begun bottoming out in H2 2023, pushed by offer chain stock restocking need in the smartphone and Pc sectors,” stated Counterpoint Study on April 2.
Samsung Electronics is anticipated to announce comprehensive earnings afterwards this thirty day period.
