Samsung Electronics Co surged the most in more than two years after posting third-quarter profit that beat analyst estimates on higher component sales.
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The South Korean gadgets creator evaluated working benefit at 7.3 trillion won, or about $6.3 billion, in the second from last quarter, well over the 4.1 trillion won posted a year before.
Samsung Electronics (KRX:005930) expected to deliver a profit that is above the expectations of Wall Street analysts for the third quarter of 2015. Samsung predicted operating profit of about 7.3-trillion won ($6.23bn) for July-September, up from 4.1-trillion a year earlier and 6.9-trillion won the previous quarter.
The world’s largest smartphone manufacturer, Samsung is struggling to increase its market share after the company continuously reported a decline in profit.
A recent weakening of the won-down 12 percent year-on-year against the dollar by the end of the third quarter-helped boost profits as most sales of semiconductors and display panels to emerging markets are settled in USA dollars, he added.
The result showed that Samsung was on track for a recovery.
The divisional results discussed above are analyst estimates, as the company has not guided for segment-wise results.
On the South Korean Stock Exchange, Samsung shares are now trading at 1,225,000 won, up 74,000 won or 6.43 percent on a volume of 479,916 shares.
Samsung’s semiconductor business is enjoying Apple’s success (it supplies components for iDevices) and is expected to keep its top position among semiconductor makers, five quarters in a row.
A few analysts think that price cuts on the phones are inevitable, especially because of competition in the high end and customers’ growing affection for more mid-range smartphones.
“The falling portion of PC DRAMs, and sound profitability through the 20 nanometer technology has lent support to its chip business”, said Hwang Joon-ho, an analyst from Daewoo Securities Co. Samsung will release its final 3QFY15 earnings on October 28.
Sales rose 7.5% to 51 trillion won in the quarter, the Suwon, South Korea-based company said in a filing on Wednesday. But analysts said it is still not clear whether those measures will be enough to arrest the fall in the company’s smartphone profit during the fourth quarter.
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Despite continuous changes in smartphone line-up for over a year, the company is still unable to reverse the declining side of its market share or margins.
