Samsung’s Q3 Beats Analysts’ Expectations
Samsung’s been undre a great deal of pressure these past few months, and between the lawsuits and successful sales numbers, there’s several factors that could affect the mobile manufacturer’s quarterly earnings. But In an interview with Bloomberg, Young Park, a Seoul-based analyst at Woori Investment & Securities Co., talks about how Samsung Electronics Co. beats analysts’ expectations for their third quarter financial report.
Twenty-eight analysts expected Samsung’s profit to be, on average, $3.1 billion but the electronics company stunned everyone when they reported an operating profit of $3.6 billion in the last three months.
Though Samsung’s semiconductor division’s sales probably fell to $7.6 billion from $8.98 billion, it was their mobile division that saved their profits. Samsung’s mobile sales rose when they released the Samsung Galaxy SII – the smartphone that some say has the power to dethrone Apple’s iPhones.
Samsung is currently the second largest maker of mobile phones, and with users of Android-powered devices outnumbering Apple users, Samsung will greatly benefit from this trend. Also, some are saying that there’s a possibility that more consumers would prefer Android devices because they were disappointed with the new iPhone 4S.
“Given Apple’s relatively unchanged new iPhone, Samsung will have the opportunity to eat into Apple’s market share with its hardware build-up and growing software power until next year,” said Jang In-Beom of Bookook Securities.
Additionaly, analysts noted that sales growth of Samsung’s non-memory chips and advanced flat displays, driven by the high demand in smartphones and tablets, will compensate for the declining sales in the company’s computer memory chips and conventional flat displays.
Though Samsung’s third-quarter forecast is remarkably positive, it is based on the International Financial Reporting Standards, and actual earnings may differ from their forecast value. Samsung is expected to announce the actual numbers later this month after they have completed auditing.
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