SEOUL (Reuters) – Samsung Electronics Co Ltd is more likely to put up its highest first-quarter revenue since 2018, analysts’ estimates confirmed, pushed by brisk income on reminiscence chips as strong demand helped to maintain costs firmer than anticipated.
Working revenue for the world’s largest smartphone and reminiscence chip maker possible hit 13.3 trillion gained ($10.9 billion) within the quarter led to March, in line with a Refinitiv SmartEstimate from 13 analysts, which is weighted towards those that are extra persistently correct. That may be up 41% from 9.38 trillion gained a 12 months earlier and the best revenue for its comparatively sluggish first quarter since 2018.
The South Korean tech big will announce preliminary outcomes on Thursday.
Samsung’s Q1 chip revenue is more likely to attain 7.6 trillion gained, greater than double the earlier 12 months’s 3.37 trillion gained, in line with a mean forecast of six analysts.
Its chip enterprise contributes about half of the tech big’s income.
Chip costs held up higher than anticipated within the first quarter, analysts mentioned, regardless of pulling again after a surge over the previous 12 months when shoppers constructed up shares to protect in opposition to provide chain bottlenecks. They famous that sturdy demand and cautious funding spending had given a lift to the sector.
“Strong chip demand from knowledge centres, chipmakers’ conservative funding to defend in opposition to falling costs, and high-end product gross sales have restricted the decline in reminiscence chip costs,” mentioned Doh Hyun-woo, analyst at NH Funding & Securities.
Samsung’s cell enterprise revenue is estimated at 4.04 trillion gained in line with a mean forecast of six analysts, barely down from the earlier 12 months’s 4.39 trillion gained however above its cell income throughout the identical interval in 2017-2020.
Samsung launched its flagship Galaxy S22 smartphone in February, which possible bought about 8 million items throughout the first quarter in line with Greg Roh, head of analysis at Hyundai Motor Securities.
Samsung has the most important share of Russia’s smartphone market at about 30 %, however Roh mentioned a halt in shipments there would have little impact since Russia and Ukraine account for less than an estimated 2% of Samsung’s whole, and this is able to be offset by gross sales to different areas.
Samsung mentioned in March that shipments to Russia had stopped after the invasion of Ukraine, though providers comparable to Samsung Pay proceed to be supplied in Russia in line with social media messages. Samsung shares have fallen about 12% year-to-date, damage by worries over the affect of the Ukraine disaster on world tech machine demand and considerations about low manufacturing yields at its cutting-edge contract chip manufacturing operation.
Samsung’s co-CEO final month addressed shareholder considerations about its manufacturing processes for chips with 5-nanometre or narrower circuitry, saying they have been step by step enhancing.
($1 = 1,216.4000 gained)
Reporting by Joyce Lee; Modifying by Edmund Klamann
