Samsung Electronics on Friday said it was expecting record operating profits of about 14.5 trillion Korean won ($12.8 billion) for the September quarter, seeing a massive jump of nearly 179 percent from the same period a year earlier.
That estimate exceeds a Reuters average forecast of 14.3 trillion Korean won in operating profits.
Samsung Electronics shares closed down 1.46 percent. Following Samsung’s earnings guidance, its CEO unexpectedly resigned.
In the previous quarter, Samsung posted an operating profit of 14.1 trillion won ($12.67 billion) that topped Apple’s operating income of $10.77 billion for the same period.
The South Korean tech giant also said it expected consolidated sales to be about 62 trillion Korean won in the third quarter, a touch lower than the 62.1 trillion won market forecast.
Over recent quarters, the world’s largest maker of memory chips, smartphones and other electronics products has seen its booming semiconductor business as a major earnings driver.
Samsung’s operating profits estimate could partly reflect a better pricing trend in the semiconductor industry, according to Mehdi Hosseini, senior analyst and senior VP for semiconductors at Susquehanna Financial Group.
“Looking forward, memory prices are going to remain stable in certain areas like DRAM [dynamic random-access memory]. They’re showing continued growth off of a higher base,” Hosseini told CNBC’s “Squawk Box” on Friday. “So memory prices going up, investment is very rational, any additional capacity is going to be very difficult. Demand is holding up too.”
Source : CNBC