SHANGHAI, CHINA – MARCH 14, 2024 – Guests go to the Galaxy S24 telephones at SAMSUNG sales space at AWE2024 in Shanghai, China, March 14, 2024.
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Samsung Electronics on Friday mentioned it expects to put up a 931% improve in first quarter working revenue, as chip costs rebound.
Working revenue within the January-March quarter seemingly rose to six.6 trillion Korean gained ($4.89 billion), up 931% from a 12 months in the past, based on a preliminary assertion. Revenue within the first quarter of 2023 was 0.64 trillion gained.
The revenue steering for the primary quarter of 2024 exceeds LSEG’s estimate of 5.24 trillion gained.
“We forecast Samsung Electronics will put up strong earnings for 1Q24 pushed by reminiscence worth hikes and strong S24 gross sales, beating market estimates,” mentioned SK Kim, government director and analyst at Daiwa Securities in a March 27 report.
“We count on the robust AI-driven reminiscence upturn cycle will drive earnings in 2024-25E,” mentioned Kim. Daiwa maintained their “purchase” score on Samsung Electronics and lifted worth goal to 110,000 gained.
First quarter income seemingly rose 11.4% from the identical interval a 12 months in the past to 71 trillion gained, the agency mentioned in a preliminary earnings assertion. LSEG analysts count on income of 71.8 trillion gained.
Samsung is the world’s largest maker for dynamic random-access reminiscence chips, that are present in client gadgets reminiscent of smartphones and computer systems.
Reminiscence chip costs fell drastically final 12 months, because of extra inventories post-Covid and weak demand for finish merchandise like smartphones and laptops.
In third-quarter earnings calls, each Samsung and the world’s second-largest DRAM chip maker SK Hynix signaled that reminiscence chip demand weak spot had lastly bottomed out following manufacturing cuts.
Income from the worldwide foundry business rose about 10% sequentially within the fourth quarter, based on Counterpoint Analysis’s Foundry Companies. Nonetheless, on a year-on-year foundation, income fell 3.5% through the three-month interval.
“Regardless of lingering macroeconomic uncertainties, the business began bottoming out in H2 2023, pushed by provide chain stock restocking demand within the smartphone and PC sectors,” mentioned Counterpoint Analysis on April 2.
Samsung Electronics is anticipated to announce detailed earnings later this month.
