Seoul: Samsung Electronics Co. on Tuesday announced its estimated third-quarter operating profit, marking the highest level in over three years and surpassing market expectations. The company's projected operating profit for the quarter ending in September stands at 12.1 trillion won (US$8.5 billion), representing a 31.8 percent increase from the previous year's 9.18 trillion won, based on earnings guidance released by Samsung Electronics.
According to Yonhap News Agency, this figure signifies the largest quarterly earnings since the second quarter of 2022 when the company recorded a 14.1 trillion-won operating profit. The third-quarter operating profit was also 17.4 percent higher than the average estimate from a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. Sales rose by 8.7 percent, reaching a record 86 trillion won, surpassing the previous quarterly record of 79.1 trillion won set in the third quarter of the previous year. The data for net income was not available as of now, with the final earnings report expected to be released later.
Although Samsung Electronics did not provide detailed figures, analysts estimated that the semiconductor business contributed significantly, with around 6 trillion won in operating profit. This was attributed to a recovery in memory chip prices, increased sales of high bandwidth memory (HBM) products, and reduced losses from the foundry business. Jeong Min-gyu, an analyst at Sangsangin Investment and Securities Co., noted that the chip division likely led the upturn in the third quarter.
The demand for Samsung's new foldable smartphones, released this summer, also supported the robust third-quarter performance. Looking ahead, experts suggest that Samsung Electronics is poised for continued growth, driven by strong semiconductor demand. Notably, the company recently signed an initial agreement with OpenAI to provide high-performance, low-power memory chips for the AI firm's Stargate project. Additionally, market watchers anticipate that Samsung's fifth-generation HBM chips will soon be supplied to Nvidia Corp.
Ryu Young-ho, an analyst at NH Investment and Securities Co., stated that Samsung Electronics is expected to achieve higher growth rates next year compared to other memory chipmakers, as its HBM business secures more new customers. Furthermore, the mobile business is forecast to maintain steady growth due to ongoing demand for its flagship products.