Samsung Electronics released preliminary results for the first quarter of 2022 on Thursday.
The company said it forecasts consolidated revenue of $63.1 billion (KRW 77 trillion) and operating profit of approximately $11.6 billion (KRW 14.1 trillion) for the quarter ended March. Those numbers are higher than in the first quarter of 2021, which generated revenue 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, Reuters said. This exceeds the $10.9 billion (13.4 trillion KRW) operating profit forecast by Bloomberg analysts. Revenue, likely to surpass the previous record of $62.8 billion (KRW 76.6 trillion) in 4Q22, is also ahead of market expectations, at about $61.4 billion (KRW 74.9 trillion) estimated by S&P Market Intelligence analysts, according to WSJ.
Sales and profits are in line with strong demand for memory chips and Samsung’s latest lineup, the Galaxy S22.
The Korean company, which produces DRAM and NAND memory chips, appears to have benefited from robust consumer demand for chips, despite the recent drop in semiconductor chip prices. DRAM prices could fall in 2Q22 due to inflation and ongoing war between Russia and Ukraine; NAND price is expected to rise approximately 5% to 10% in the second quarter of this year due to a raw material contamination issue at a joint venture facility of Japan’s Kioxia and US-based Western Digital , which disrupted NAND flash production, according to TrendForce.
Samsung said on Wednesday that sales of the Galaxy S22 series are likely to exceed 1 million units in South Korea by the end of this week. The company is also expected to ship more than 6 million units of the S22 series by the end of March after its February launch, Sujeong Lim, an associate director at research firm Counterpoint, told Reuters.
The Korean tech giant will release its full first-quarter results on April 28.
This post Samsung’s upcoming Q1 earnings estimates on solid chip demand – TechCrunch was original published at “https://techcrunch.com/2022/04/06/samsungs-upcoming-q1-earnings-top-estimates-on-solid-chip-demand/”