Samsung Electronics may post highest first-quarter profit since 2018

The company said it forecasts it will report consolidated revenue of $63.1 billion (77 trillion KRW) and operating profit of about $11.6 billion (14.1 trillion KRW) for the quarter ended in. March. These numbers are up from the first quarter of 2021, reaching $53.6 billion in revenue and $7.6 billion in operating profit.

According to Reuters, the South Korean tech company is expected to post its highest first-quarter operating profit since 2018, up 50 percent from last year’s first quarter. This was higher than the $10.9 billion (13.4 trillion KRW) operating profit that Bloomberg analysts had expected. Sales, likely to hit the previous record of $62.8 billion (76.6 trillion KRW) in Q4 2022, were also well above market expectations, estimated at $61.4 billion. (74.9 trillion KRW) as estimated by S&P Market Intelligence analysts, according to the WSJ.

Sales and profit grew due to strong demand for memory chips and Samsung’s newest product line, the Galaxy S22.

Samsung, which makes DRAM and NAND memory chips, appears to have benefited from steady consumer demand for chips despite the recent drop in semiconductor prices, according to analysts.

Information from TrendForce said that the price of DRAM may decrease in the second quarter of 2022 due to inflation and continuing war in Ukraine; NAND prices are expected to increase by around 5% to 10% in Q2 of this year following a raw material contamination incident at a joint venture of Japan’s Kioxia and US-based Western Digital, which has interrupt the production of NAND flash.

Samsung added that sales of the Galaxy S22 series are likely to surpass 1 million units in South Korea this weekend. The company is also expected to ship more than 6 million units of the S22 series by the end of March after the launch in February, said Sujeong Lim, deputy director of research firm Counterpoint.

The company will release its full Q1 earnings results on April 28.

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