Samsung Electronics sees operating profit jump on mobile sales

The upper end of the earnings forecast beats analysts' expectations

Samsung Electronics expects a first-quarter operating profit of between 8.5 trillion won and 8.9 trillion won ($US7.6 billion to $US8 billion), a sharp increase of at least 49 per cent from a year earlier.

Market watchers said the Korean electronics giants appears to be poised to post better-than-expected results despite seasonally slow first-quarter demand for IT products and costs resulting from a patent dispute with its biggest rival, Apple.

The earlier consensus among local electronics industry analysts for an operating profit of 8.5 trillion won in the first quarter was at the low end of Samsung's forecast, according to Lee Seung-woo, an analyst at IBK Investment and Securities in Seoul. The upper end of the forecast is substantially higher.

The company also estimated revenue at between 51 and 53 trillion won, compared to 45.3 trillion won the year prior. Samsung's earnings guidance did not break down figures for each of its business units.

In addition, Samsung did not disclose its net profit estimate. It is due to announce actual first-quarter earnings, along with figures broken down by unit, later this month.

While Samsung did not explain the jump in profits, analysts attributed the rise to robust sales of smartphones and phablets like the Galaxy S3 and Galaxy Note 3 models.

"While the first-quarter is traditionally a slow season, Galaxy S3 sales were similar to the previous quarter's 14 million units, and Galaxy Note 2 sales gained about 1 million units to 9 million total," said Byun Han-joon, an analyst at KB Investment & Securities in Seoul, in a recent report.

Next quarter, the launch of the Galaxy S4 smartphone is expected by analysts to drive continued strong sales.

"I expect the Galaxy S4 to fuel Samsung Electronics' operating profit to be roughly 10 trillion won in the second quarter with sales of 25 million units worldwide," said LIG Investment & Securities analyst Choi Do-yeon. He expects Samsung's second quarter smartphone sales overall to reach 80 million units.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultssamsung

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jennifer Chang

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?