As planned, Samsung Electronics began Friday with the announcement of preliminary results for the third fiscal quarter. The company’s operating income grew 28% year-on-year to $ 13.3 billion, which is the highest since the third quarter of 2018. Revenue should have increased by 9% to $ 61.2 billion.
Industry analysts got it right with the amount of operating profit, but expected more from Samsung in terms of revenue. A detailed quarterly report will be published on October 28, at the same time it will be possible to draw conclusions about the results of the activities of individual structural units of the company. For example, semiconductor manufacturing is expected to increase the company’s operating profit by 79% and the contract business profit margin to exceed 10%, but these are unofficial estimates.
The release of the preliminary quarterly results caused Samsung Electronics shares to rise by one percent. In the future, the mood of investors will be determined by the dynamics of prices for memory microcircuits, on the implementation of which Samsung continues to significantly depend. Analysts believe that the company will be able to avoid a noticeable decline in prices next year, as manufacturers usually try to limit supply in conditions of market overstocking. Now they do not have many reserves for increasing production volumes in the form of ready-made technological premises, and the entry into the DDR5 market will help improve financial performance.
The launch of new foldable display smartphones from Samsung in August boosted revenue for the company’s mobile division, as the Galaxy Z Flip3 and Galaxy Z Fold3 ranked third in Korean market history behind the Galaxy Note 10 and Galaxy S8. The only thing that spoiled the dynamics of financial indicators was the increased costs of promoting new products.