Samsung Electronics shares failed to carry onto earlier positive factors on Friday after the corporate stated its working revenue for the quarter that resulted in September was seemingly 28% increased than a 12 months in the past at 15.8 trillion Korean gained ($13.26 billion).
That is set to be the South Korean semiconductor large’s greatest quarterly revenue in three years — because the third quarter of 2018 when Samsung posted a revenue of greater than 17.5 trillion gained.
Nonetheless, Friday’s determine fell under analysts’ estimates of 16.1 trillion gained, based on Refinitiv SmartEstimate.
Samsung shares rose greater than 1% in early commerce, however gave up these positive factors to shut 0.14% decrease.
Consolidated gross sales for the quarter seemingly rose to a document excessive of 73 trillion gained — up 9% from a 12 months in the past.
The South Korean tech large didn’t break down how every enterprise unit carried out, together with its primary profit-making semiconductor enterprise.
However operations on the world’s largest smartphone and chipmaker have been affected by a world chip scarcity and the coronavirus pandemic that shuttered a few of its factories around the globe.
“Each income and working revenue [are] decrease than our estimate, and market estimate,” stated SK Kim, government director and senior analyst at Daiwa Capital Markets.
Samsung was partially affected by the semiconductor scarcity, particularly in its smartphone enterprise, and certain confronted some logistics issues for its client electronics unit, Kim stated Friday on CNBC’s “Squawk Field Asia.” However rising semiconductor costs seemingly had a optimistic affect on Samsung’s elements enterprise, he added.
Daiwa has a value goal of 110,000 gained (about $92) a share for Samsung, implying greater than 53% upside from Thursday’s shut, because it expects increased semiconductor costs to drive the tech firm’s earnings.
Chip scarcity is starting to have an effect on the smartphone business the place the likes of Samsung and Apple had to date been shielded from the fallout by stockpiling important elements like reminiscence chips.
Late final month, Counterpoint Analysis lowered its smartphone cargo forecasts for the second half of 2021, saying that some smartphone makers are struggling to obtain all of the elements they ordered to make smartphones.
Full outcomes for the September quarter are due later this month.
Samsung shares are down greater than 11% year-to-date.