SEOUL (Reuters) – Samsung Electronics Co Ltd is predicted to forecast a file third-quarter revenue on Friday due to the robust marketplace for reminiscence chips, and as cell earnings bounce again from final 12 months’s expensive withdrawal of the Word 7.
The failure of the fire-prone Word 7 smartphone is now a distant reminiscence for the South Korean know-how big, which is close to its highest ever market valuation after an almost 50 % surge in its share worth thus far this 12 months.
The world’s largest maker of reminiscence chips and cell phones has been the chief beneficiary of the scorching semiconductor market, as cell units and servers demand ever better processing energy.
Brisk gross sales of the newest Galaxy Word eight smartphone, launched in mid-September, are also more likely to additional enhance its efficiency, analysts stated.
“Samsung’s valuation continues to be comparatively decrease than international opponents,” stated Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities.
“Fourth-quarter earnings will enhance throughout the board and hold bettering in 2018.”
Samsung’s July-September working revenue is predicted to rise to 14.three trillion received ($12.51 billion), in keeping with a Thomson Reuters survey of 19 analysts. That’s almost 3 times the 5.2 trillion received posted a 12 months earlier and barely higher than the earlier quarter’s 14.1 trillion received.
The Apple Inc rival will concern its earnings steerage early on Friday.
Robust international demand for DRAM chips will proceed to outpace provide in 2018, whereas demand for NAND flash chips exceeded provide for six straight quarters as of final month, DRAMeXchange, a division of knowledge supplier TrendForce, stated.
Samsung’s cell division is seen posting working revenue of about three trillion received, in comparison with simply 100 billion received within the third quarter of 2016. Pre-orders for the Word eight hit the highest-ever for the Word collection.
Decrease liquid-crystal show (LCD) panel costs in addition to one-off prices are anticipated to weigh on Samsung’s show enterprise throughout the third quarter, analysts stated.
Nonetheless, the show enterprise might enhance within the fourth quarter on the again of gross sales of natural light-emitting diode (OLED) panels for brand new Apple smartphones.
Samsung will solely present estimates for July-September income and working revenue on Friday, and can disclose detailed ends in late October.
($1 = 1,142.7700 received)
Reporting by Joyce Lee; Enhancing by Stephen Coates