Proactive Investors - Samsung Electronics (LON:0593xq) provided head-turning revenue and profit estimates in a bare-bones first-quarter trading update today.
The Korean technology giant predicted quarterly revenues of 71 trillion Korean won and an operating profit of 6.6 trillion won.
This translates to $52.5 billion and $4.9 billion respectively, implying a nearly ten-fold increase in profits compared to the same period in 2023, when profits totalled around $500 million.
Samsung did not go into detail, but it is expected that a revival in semiconductor sales has driven this stellar return to form.
Though Samsung may be better associated with smartphones, TVs and other household appliances, the memory semiconductors it manufactures represent up to a fifth of group-wide sales (as of the last financial year).
Samsung is second only to Taiwan Semiconductor Manufacturing Company in terms of semiconductor production and counts many of the same blue chips on its client list.
It has left Samsung exposed to the cyclical downturn in semiconductor demand in recent years, which itself was a result of less demand for high-end computing devices that run on silicon.
But Samsung’s bullish trading update suggests a cyclical rebound may be underway; the group’s full financial report due on 30 April will provide further insight in this regard.
Investors may be holding off until this earnings release- shares failed to spark any interest on Friday, with the stock closing a percentage point lower in Seoul.