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Samsung’s next Q1 earnings estimates on solid chip demand – TechCrunch


Samsung Electronics released on Thursday his preliminary earnings for the first quarter of 2022.

The company said it expects to report consolidated revenue of $63.1 billion (KRW 77 trillion) and operating profit of around $11.6 billion (KRW 14.1 trillion). KRW) for the quarter ended March. Those numbers are up from the first quarter of 2021, which generated sales of $53.6 billion and operating profit of $7.6 billion.

The Korean tech giant is expected to post its highest first-quarter operating profit since 2018, a 50% increase from the first quarter of last year, according to Reuters.. This exceeds the $10.9 billion (KRW 13.4 trillion) operating profit that Bloomberg analysts had forecast. Sales, which are expected to surpass the previous record high of $62.8 billion (KRW 76.6 trillion) in 4Q22, are also above market expectations, around $61.4 billion (KRW 74.9 trillion). estimated by S&P Market Intelligence analysts, by WSJ.

Sales and earnings are in line with strong demand for memory chips and Samsung’s latest lineup, the Galaxy S22. The Korean firm, which produces DRAM and NAND memory chips, appears to have benefited from strong consumer demand for the chips despite the recent drop in semiconductor chip prices. DRAM prices could fall in 2Q 22 due to inflation and continued Russian-Ukrainian war; NAND Price is expected to rise by around 5% to 10% in the second quarter of this year following a raw material contamination problem at a joint venture between Japanese Kioxia and American Western Digital, which disrupted NAND flash production , by TrendForce report.

Samsung said on Wednesday that sales of the Galaxy S22 series are expected to exceed 1 million units in South Korea by the end of this week. The company is also expected to have shipped over 6 million units of the S22 series by the end of March following its February launch, Sujeong Lim, associate director of research firm Counterpoint, told Reuters.

The Korean tech giant will announce its full first-quarter results on April 28.

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