Samsung Electronics posted its quarterly earnings guidance, and the numbers look great for the Korean giant. Operating profit will be in the KRW13.7-13.9 trillion ($11.38-11.55 billion) range, which is the best result since Q4 2017. It is a 52% increase, compared with last year, but some analysts expected an even higher jump.
|Q4 2021 Guidance KRW / USD||Q4 2020 Results KRW / USD||Q3 2021 Results KRW / USD|
|Sales||KRW 75 trillion – 77 trillion /
$62.3 billion – $63.97 billion
|KRW 61.55 trillion /
|KRW 73.98 trillion /
|Operating Profit||KRW 13.7 trillion – KRW 13.9 trillion /
$11.38 billion – $11.55 billion
|KRW 9.05 trillion /
|KRW 15.82 trillion /
The profit jump comes from strong server chip demand between October and December 2021. Prices of memory chips dipped during the quarter, but demand from Samsung clients increased both for DRAM and NAND chips.
Profit expectations miss is mostly due to various costs in the fourth quarter such as employee bonuses, marketing costs for the mobile business and ramp-up costs for new display panels, revenues from which will be accounted in the next three-month period.
The full breakdown of the financial results is expected at the end of this month.