Samsung Electronics is expecting profits of 8.1 trillion won (£5.39 billion) in Q2 – its highest quarterly gain in two years.
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Revenue was 50 trillion won in the June quarter, the Suwon-based company said, compared with the 50,9 trillion won analysts expected.
Lacklustre sales of offerings from rivals such as Apple Inc (AAPL.O) and LG Electronics Inc helped to reduce Samsung’s marketing expenses, they said.
Its operating profit is the largest in about two years and beats what Wall Street had expected. When final numbers are in at the end of the month, the company will be able to provide further details as to each unit’s performance, and the effect of its smartphones.
The new Galaxy S7 played a pivotal role in sound second-quarter earnings.
Samsung is giving this Galaxy S7 edge Olympic Games Limited Edition all 12,500 athletes that are competing in this year’s games. The consolidated operating profit is approximately 8.1 trillion Korean won. The forecast for operating profit is above expectations of analysts on Wall Street. The total amount of sales is expected to reach 50 trillion won compared to sales from past year during the same quarter of 48.5 trillion won. Global sales of Samsung’s premium SUHD TVs have been strong, while demand was lively for air conditioners just ahead of the summer.
Analysts also pointed to Samsung’s strong semiconductor business, which produces memory chips for its own gadgets as well as for clients like Apple.
The display division also posted a surplus in the second quarter following disappointing earnings in the first. Year-to-date, the company’s stock has risen almost 15 percent, outperforming the broader stock index. One thing working in Samsung’s favor is that it brought back the microSD card slot and made the Galaxy S7 water resistant, both of which are popular upgrades over the previous Galaxy S6 series.
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It is also an addition to Samsung’s 4G-enabled smartphones portfolio, which forms over 60 per cent of the 4G market in the country today, the company said in a release.
