Samsung Electronics tips record second-quarter profit as memory prices surge

Samsung Electronics Co Ltd (005930.KS) on Friday said its 2d-quarter running income likely rose seventy-two percent from a yr earlier to a brand new record, beating analyst estimates, as robust reminiscence chip fees helped widen margins.

The Apple Inc (AAPL.O) smartphone rival and global reminiscence chip chief said 2nd-area running income become in all likelihood 14 trillion received ($12.Eleven billion), as compared with the 13.1 trillion won common of nineteen analyst estimates in a Thomson Reuters ballot.

Revenue in all likelihood rose 18 percent from a year earlier to 60 trillion won, versus analysts’ forecast of fifty-nine trillion gained.

Samsung shares are buying and selling at a close to-report high of two.4 million won as of Thursday, as traders stay up for report profits in 2017 driven via developing the call for chips capable of powering ever more complex servers and smartphones.

On Tuesday, the corporation stated it would invest $18.6 billion to increase its lead in memory chips and subsequent-generation displays.

Samsung did not tricky on its April-June overall performance and will reveal exact outcomes on the cease of July. Even so, analysts have tipped its chip department to propel the company to record standard income.

Employees walk within the important office constructing of Samsung Electronics in Seoul, South Korea, on this document photo taken on January 6, 2016. REUTERS/Kim Hong-Ji
Employees walk in the primary workplace constructing of Samsung Electronics in Seoul, South Korea, in this record photograph taken on January 6, 2016. REUTERS/Kim Hong-Ji
The memory chips enterprise is extensively Tech giant Samsung Electronics Co Ltd 005930.KS on Friday predicted a record quarterly running earnings for April-June, propelled with the aid of a reminiscence chip boom that analysts say will preserve to pad margins for the relaxation of 2017.

READ MORE :

The Apple Inc AAPL.O telephone rival and worldwide memory chip leader said 2d-sector running earnings turned into probably 14 trillion received ($12.11 billion), compared with the thirteen.1 trillion won average of 19 analyst estimates in a Thomson Reuters ballot.

Revenue possibly rose 18 percent from 12 months in advance to 60 trillion won, additionally a quarterly document, as opposed to analysts’ forecast of 59 trillion gained. The South Korean firm did no longer problematic and could launch specific income in past due July.

The study estimates reinforce expectations for high-quality-ever earnings for Samsung this yr, fuelled through a so-known as reminiscence chip super cycle. Analysts are expecting shortages for each DRAM and NAND chips to persist for the relaxation of this yr due to limited delivery boom and call for more computing energy on smartphones and servers, padding margins for reminiscence makers.

Another income driver has also emerged in the form of organic light-emitting diode (OLED) displays. Samsung has a stranglehold in the marketplace for the bendy, subsequent-era displays which might be widely anticipated for use for Apple’s brand new iPhones, due out by using October.

“In July DRAM prices will cross up once more, whilst from mid-August on, OLED panels go out for Apple,” HMC Investment analyst Greg Roh stated. He expects Samsung’s third-zone running earnings to exceed 15 trillion won.

ALSO IN TECHNOLOGY NEWS

Germany says cyber threat more than expected, greater firms affected
Kansas nuclear operator is sufferer in hacking spree: Bloomberg
Samsung stocks had been down zero.3 percentage in early Friday alternate, compared with a zero.2 percent fall for the broader marketplace, as the sturdy profits outlook turned into already priced in. The inventory is up more than 30 percent this year and soaring near all-time highs.

While analysts say the memory chip industry will trip a notable-cycle for numerous years at the returned of consolidation and new demand from offerings consisting of cloud computing and synthetic intelligence, its growth fee may sluggish from the huge jump anticipated this 12 months.

Samsung said on Tuesday it would make investments $18.6 billion to increase its lead in memory chips and next-technology presentations, a circulate possibly to ease shareholder fears that main choices have been on the back burner whilst Vice Chairman Jay Y. Lee fights bribery costs in the courtroom.

On the cellular, the front, sales prospects for the Galaxy Note eight might be closely watched in the 0.33 sector after its predecessor become pulled from the marketplace final yr because of fire-susceptible batteries.

Samsung is preparing to unveil the handset in August, a supply advised Reuters, underscoring the company’s desire to keep the Note logo.

(Reporting by using Joyce Lee; Additional reporting and writing by means of Se Young Lee; Editing by Stephen Coates)
The reminiscence chips enterprise is broadly Tech massive Samsung Electronics Co Ltd 005930.KS on Friday predicted a file quarterly running earnings for April-June, propelled by a memory chip boom that analysts say will continue to pad margins for the rest of 2017.

The Apple Inc AAPL.O cell phone rival and global reminiscence chip chief said 2nd-sector working profit were in all likelihood 14 trillion gained ($12.11 billion), compared with the thirteen.1 trillion won average of nineteen analyst estimates in a Thomson Reuters poll.

Revenue likely rose 18 percent from a yr earlier to 60 trillion gained, additionally a quarterly document, versus analysts’ forecast of fifty-nine trillion gained. The South Korean firm did no longer complex and will release particular earnings in past due July.

The study estimates fortify expectancies for excellent-ever income for Samsung this 12 months, fuelled by a so-called memory chip super cycle. Analysts predict shortages for both DRAM and NAND chips to persist for the rest of this yr because of confined deliver increase and call for greater computing energy on smartphones and servers, padding margins for memory makers.

Another earnings driver has additionally emerged within the shape of organic mild-emitting diode (OLED) shows. Samsung has a stranglehold on the market for the flexible, next-generation screens which are extensively anticipated for use for Apple’s state-of-the-art iPhones, due out through October.

“In July DRAM prices will pass up again, whilst from mid-August on, OLED panels go out for Apple,” HMC Investment analyst Greg Roh stated. He expects Samsung’s third-zone running income to exceed 15 trillion received.

ALSO IN TECHNOLOGY NEWS

Germany says cyber hazard more than predicted, greater corporations affected
Kansas nuclear operator is victim in hacking spree: Bloomberg
Samsung stocks have been down zero.3 percent in early Friday change, as compared with a zero.2 percent fall for the wider marketplace, as the sturdy profits outlook changed into already priced in. The inventory is up extra than 30 percent this year and hovering close to all-time highs.

While analysts say the memory chip enterprise will trip a notable-cycle for several years at the return of consolidation and the new call for from offerings along with cloud computing and artificial intelligence, its boom price may additionally gradual from the big leap anticipated this year.

Samsung stated on Tuesday it would invest $18.6 billion to increase its lead in reminiscence chips and subsequent-generation shows, a flow probably to ease shareholder fears that major decisions were on the back burner while Vice Chairman Jay Y. Lee fights bribery prices in the courtroom.

On the cell, the front, income prospects for the Galaxy Note 8 could be carefully watched inside the 0.33 sector, after its predecessor become pulled from the market last 12 months because of fire-prone batteries.

Samsung is preparing to unveil the handset in August, a source instructed Reuters, underscoring the firm’s desire to keep the Note emblem.

 

 

Recently Published Stories

How The Beauty Industry Is Adapting To Change

I later attended the WWD Beauty Summit, in all likelihood the most vital convention in

Life swap … landlords are being given the chance to live like their tenants

Linda is sixty-six, lives by myself and units her alarm for four.30am to begin work

Photo exhibit reveals quieter moments from JFK’s life

President John F. Kennedy’s all-too-brief existence become documented like in no way before in pictures

Bills Life: Bills Rookie program provides smooth transition into NFL

In this week’s Bills Life, we find out how the Buffalo Bills 2017 rookie elegance

How to transform your life with a gut makeover – including what to eat and when

Stressed, irritable and worn-out? Suffering from zits, migraines or IBS and bloating? Struggling to shift

How do I make sure my kids stay friends for life?

Ruth Thomas, 51, no longer speaks to her brothers. “I turned into the eldest of

Being Donald Trump: the life of an impersonator

John Di Domenico appears nothing like Donald Trump: He’s 17 years younger, numerous inches shorter

Crowdfunding for your life

On February 24, 2017, Molly Young got a few devastating news. She had breast most

Letter to my younger self: your business is your life

Dear Kate, You’re 29 and nicely into your first yr of walking your very own

Slice of life

Fresh art graduates observe the city thru multiple vantage points When Mumbai-primarily based Sagar Shiriskar

‘Sahara Life should not procure new business’

Insurance regulator IRDA, which in advance this month had appointed an administrator to control the

Stratis Introduces the World to ‘Blockchain as a Service’

In A Mad World, My Masters John Simpson offers a fixed of observations and anecdotes

Donald Trump is wrong. Mexico isn’t the second-deadliest country in the world.

MEXICO CITY — On Thursday night time, Trump tweeted that “Mexico turned into just ranked

India vs England Live Score, ICC Women’s World Cup 2017: Mandhana departs for 90

After the 3 weeks of movement from the guys within the Champions Trophy, motion in

Adelaide DJ supplying rotary mixers to the world as analogue comes back

Back when disco changed into King inside the late 1970s, tune at famous New York

Donald Trump realises India has been ‘force for good’ in world: Senior White House official

WASHINGTON: On the eve of Prime Minister Narendra Modi’s US visit+, the Trump management has

In a world of strangers who speaks your language?

“We are unexpectedly losing numerous vital elements of a civilised, salutary society. We are seeing

Women’s cricket makes 2017 World Cup declaration of intent

The Women’s Cricket World Cup takes to fields across England this weekend, seeking to bowl

The world is starting to solve its own problems — with or without Trump

Everyone knew it changed into coming, but its impact is abruptly greater unsettling as negotiations

England v India: Women’s Cricket World Cup – live!

Twenty-third over India 113-0 (Raut 37, Mandhana 73) England captain Heather Knight has had sufficient.