Exceeding Market Estimates
Meritz Securities said on March 12 that Samsung Electronics will record 5.6 trillion won (US$4.99 billion) in operating profits in Q1 this year, exceeding market estimates.
Park Yu-ak, an analyst at Meritz Securities, said, “Operating profits in Q1 will reach 5.6 trillion won [US$4.99 billion] and greatly exceed a consensus. Also, the figure in Q2 will amount to 6.8 trillion won [US$6.06 billion], a 23 percent increase from the previous quarter, maintaining stable growth. I believe that profits in the IM and System LS divisions are significantly improving.”
Park said, “In the semiconductor division, there will be increasing shipments in the memory sector due to the release of new smartphones, and increasing rates of System LSI operations due to the mass production of the Exynos and A9. In the IM division, the company will record 84.48 million units, a 5 percent increase from the previous quarter, thanks to the sales effects of the Galaxy S6, and the average selling price of smartphones will increase to US$286, a 31 percent increase from the previous quarter.”
In the DP division, the price of TV panels is expected to drop. However, it will see a slight growth from the previous quarter due to the rising rate of operation in the OLED sector, which is mounted on the Galaxy A, E, and S6. In the CE division, the company also expects growth compared to the previous quarter due to the start of the busy season in the home appliance sector.