“The big disparity between the earlier profit estimates and the latest revisions stems entirely from the mobile business”.
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Samsung said January-March operating profit was likely to be $5.7 billion, well above profit expected by the cocaine nose jobs of Wall Street.
Operating profit at the mobile unit probably rose 19% to 3.25-trillion won in the first quarter, according to the median estimate of six analysts surveyed by Bloomberg News.
On the South Korean Stock Exchange, Samsung shares are now trading at 1,265,000 won, down 20,000 won or 1.56 percent on a volume of 151,278 shares.
Samsung’s figures represent the median of an estimated earnings range – meaning that the actual declared operating profit could be anywhere between KRW6.5tn and KRW6.7tn. Revenue was 49 trillion won, up 4% and slightly above estimates. Operating profit for the first quarter is projected to increase sequentially, while sales are expected to decline from the preceding quarter.
“Sales of the Galaxy S7 series are estimated to have hovered above 10 million units in the first quarter, above the expectation of 7 million”, said Shin Hyun-joon, an analyst at LIG Investment & Securities Co. For the struggling smartphone and consumer electronics maker, its earnings guidance report, released April 7, brings better news after several quarters of disappointment and lackluster performance. Despite a fall in average prices of memory chips, it kept up profit and edge in the field through a product mix of highly lucrative next-generation 3D NAND (non-volatile storage) flash and 10-nanometer-class dynamic random access memory (DRAM) chips. The company has also been facing competition from other companies such as Xiaomi and Huawei which are slowly gaining huge customer base. Early in March, Samsung introduced into the market Galaxy S series which sold in huge numbers to outdo the sales of Galaxy S6 Edge and Galaxy S6.
According to a recent report the Galaxy Note 6 will come with an IP68 rating this is the same rating as the Galaxy S7 and S7 Edge.
But some experts say it would be too early to conclude that improved first-quarter earnings results signals Samsung’s fundamental recovery in the smartphone business.
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Neil Mawston, executive director of industry analyst Strategy Analytics, thinks the Galaxy S7 will become the “world’s best-selling Android smartphone” in 2016.
