Samsung expects operating profit to grow by 931% in the first quarter

Samsung Electronics expects a significant increase in operating profit for the first quarter of 2024, which ended on March 31, reports Reuters.

The manufacturer estimates its operating profit for the first quarter at 6.6 trillion won ($4.89 billion). This is 931% higher than in the first quarter of 2023, when Samsung Electronics’ operating profit amounted to 640 billion won ($473 million).

If the company’s forecasts come true, the result will be the highest since the third quarter of 2022.

The financial indicator also significantly exceeds analysts’ forecasts. For example, LSEG SmartEstimate predicts that Samsung Electronics’ operating profit in the first quarter of this year will amount to 5.7 trillion won ($4.2 billion).

The company also estimated revenues for January-March at 71 trillion won ($52.5 billion). This is 11% less than a year ago. The figure is also inferior to experts’ forecasts – they expect Samsung Electronics to receive 72.3 trillion won ($53 billion) in revenue.

According to the publication, the improvement in performance is possible due to the fact that the chipmaking unit is expected to report its first quarterly profit in five quarters. This is due to the fact that chip prices have rebounded from the deep recession that began in mid-2022.

Samsung Electronics plans to publish its financial report on April 30.