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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuessamsungfinancial results

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

Jennifer Chang

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

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.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

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?