Thursday, July 6, 2017

Samsung announces earnings guidance for Q2 2017, could be its best ever quarterly profit

Samsung has announced its earnings guidance for the second quarter of 2017 (April-June), and things look extremely positive, especially after the company took a tumble in 2016 due to the Galaxy Note 7 fiasco. The company’s consolidated sales stood at around KRW 60 trillion (approximately $53 billion) with an operating profit of around KRW 14 trillion (roughly $12.1 billion). This could mean that Samsung could post a higher quarterly profit than Apple for the first time, making it the most profitable company in the world. However, these numbers are just an estimate, and the actual numbers will be revealed in a few weeks.

This could be Samsung’s best ever quarterly profit. Compared to the previous quarter, the company’s sales increased by around 18%, and the operating profit rose by a whopping 41%. Analysts say that the numbers got a boost due to the well-received Galaxy S8 and S8+ as well as increased sales of memory chips, processors, and display panels. This means that the South Korean electronics giant will continue the record-breaking performance from last quarter. The company is further investing to improve sales of its memory and storage chips, processors, and OLED display panels. The chip business is predicted to be more than half of the operating profit.

(in trillion won) 2017. 2Q 2017. 1Q 2016. 2Q
Sales 60 50.55 50.94
Operating Profit 14 9.90 8.14