Samsung Electronics reports earnings surprise in Q1

[Photo by MK DB]

Samsung Electronics Co. saw an earnings surprise in the first quarter of 2024 that was driven by the rebound in the memory chip industry.

According to regulatory filings on Friday, the chipmaker’s operating profit for the first quarter of the year was estimated at 6.6 trillion won ($4.9 billion). This figure is an increase of 931.25 percent year-on-year and surpasses the company’s annual operating profit for 2023, which was 6.57 trillion won.

Sales also saw a notable rise, increasing by 11.37 percent year-on-year to 71 trillion won. Quarterly sales also recovered to the 70 trillion won level for the first time in five quarters since the fourth quarter of 2022, when it totaled 70.5 trillion won.

[Graphics by Song Ji-yoon]

The chipmaker’s first-quarter performance exceeded analysts‘ forecasts by more than 20 percent. Projections from 18 securities firms which released reports within the past month had predicted Samsung Electronics’ first-quarter sales to increase by 12.88 percent year-on-year to 71.95 trillion won, with operating profit sharply rising by 755.3 percent to 5.48 trillion won.

Analysts had initially forecasted the chipmaker‘s operating profit to be in the mid to late 4 trillion won range at the beginning of 2024, but recently revised forecasts upwards following memory reduction and resulting price increases.

While sector-specific performance was not disclosed on this day, analysts expect that the company’s Device Solutions (DS) division, responsible for its semiconductor business, would have posted 700 billion to 1 trillion won in operating profits, turning to profitability for the first time in five quarters since the fourth quarter of 2022.