Samsung to Release Preliminary Earnings Tomorrow; Analysts Project Q3 Operating Profit to Surge Nearly Ninefold
1 hours ago
Driven by strong demand for artificial intelligence, analysts forecast Samsung Electronics' third-quarter operating profit will surge nearly ninefold. However, since the end of August, analysts have trimmed their forecasts by almost 8%. Against a backdrop of slowing memory chip price gains and a stronger South Korean won, the memory chip maker projects third-quarter operating profit of 106.1 trillion won (about $79.1 billion). This would mark Samsung's fourth consecutive quarter of record operating profit, up from 12.17 trillion won in the same period last year. However, the slowdown in third-quarter price gains has amplified market concerns that chip profit margins may have peaked, and raised questions about the sustainability of the AI spending boom. SK Securities analyst Han Dong-hee estimates Samsung's third-quarter memory chip operating margin will reach 76%, unchanged from the prior quarter. Samsung is scheduled to release its preliminary third-quarter results on Thursday, with detailed figures to be published in late October.
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