Samsung Electronics Co Ltd expects
January-March profit to be its highest in
three quarters, beating expectations and
suggesting that the tech giant is on trac
for an earnings recovery ahead of the
launch of new flagship smartphones.
Operating profit likely reached KRW 5.9
trillion ($5.44 billion, roughly Rs. 33,893
crores) in the first quarter, the South
Korean manufacturer said on Tuesday,
versus the 5.3 trillion won average
estimate of 41 analysts in a Thomson
Reuters I/B/E/S survey.
This was also better than KRW 5.3 trillio
reported for October-December even
though the first quarter tends to be a
seasonally weaker period as the industry
comes off the year-end peak. Samsung
typically releases final first-quarter
figures towards the end of April.
"These results are meaningful and will
lead to very strong earnings expectations
for the second quarter," HMC Investment
analyst Greg Roh said.
Shares of Samsung were up 0.4 percent
as of 0100 GMT Tuesday, following the
earnings guidance, versus a 0.3 percent
gain in the broader market.
Investors and analysts expect the Galax
S6 and Galaxy S6 Edge models - on sal
from Friday - to revive handset sales an
propel profits in coming quarters.
Researcher Counterpoint expects
Samsung to sell more than 50 million
units of the new devices to consumers
this year - a new record for the company
The mean estimate from a Thomson
Reuters I/B/E/S survey of 40 analysts
tips a KRW 6.7 trillion April-June profit,
improving sequentially for the third
consecutive quarter. The contribution
from Samsung's chip-making division is
also tipped to be just as significant as
smartphone-related income.
Chips likely out-earned phones for a thir
straight quarter in January-March,
analysts said, as Samsung dominates in
memory and grew market share for
system chips. Samsung opted to use
more of its own chips for its Galaxy S6
models and added chip maker Nvidia
Corp as a new contract manufacturing
client.
The smartphone business likely also saw
sequential shipments growth in the first
quarter as new mid-tier handsets such a
the Galaxy A and E models went on sale
in major markets, analysts said.
For all of 2015, profit is likely to rise 6
percent to 26.5 trillion won, according to
a Thomson Reuters I/B/E/S survey of 51
analysts. Improving sales particularly in
system chips and favourable pre-sale
reviews for the S6 have helped reverse
the estimate from a profit decline foreca
earlier this year.
http://m.gadgets.ndtv.com/mobiles/news/samsung-q1-profit-signals-recovery-ahead-of-galaxy-s6-s6-edge-launch-678525
