Samsung Electronics To Report Above-Consensus Q3 Profits Reflecting Hopes On Chip Recovery

Samsung Electronics Co Ltd SSNLF reported preliminary Q3 FY23 earnings.

Q3 operating profit fell around 78% Y/Y to about 2.4 trillion Korean won from 10.85 trillion won a year earlier.

Quarterly profits surpassed LSEG SmartEstimate of 2.1 trillion won, with the memory chip market showing early signs of improvement, as per Reuters.

Also, the company's Q3 sales of about 67 trillion Korean won vs. 76.78 trillion Korean won a year ago.

Citing analysts, the report noted that the mobile business is expected to generate an operating profit of around 3 trillion won, similar to last year, on launching its premium foldable smartphones in Q3. 

Also, the losses in Samsung's memory chip business are reportedly projected to shrink to around 3 trillion won as Samsung focuses on more profitable, higher-end chips, such as DRAM chips used in artificial intelligence, and continues to cut production of older legacy chips.

Notably, Samsung reported losses of 4.58 trillion won in Q1 and 4.36 trillion in Q2 in its chip business, on plummeting memory chip prices and lower inventory values.

Also Read: How Apple and Nvidia Could Boost Samsung's Financial Landscape?

The company is expected to report 3Q23 Earnings on October 31, 2023.