Samsung registers higher records for its third quarter estimates

Samsung Electronics shares received a higher edge on Friday when the company stated its operating profit for the second quarter ending in September to be 28% higher than that was a year ago at USD 13.26 billion. It is expected to become Samsung’s highest quarterly profit in over three years. However, Friday’s figure registered a fall below analysts’ estimates of about USD 13.65 million. The shares of Samsung soared over 1% in the early trade, but eventually registering a fall in some gains and ending trade at 0.42% higher rate. The consolidated sales amount for the quarter had rose to a record level of about USD 61.90 million, which is up by 9% from that a year ago.

The South Korean electronics giant was not able to provide a break down for the performance of each business segment, including its profit-making business of semiconductor. However, the operations at the world’s largest electronics manufacturers has received an impact by growing number of global chip shortage accompanied by the pandemic that has been shattering the operations for some factories all around the world. Both the revenue and operating profit have been recorded at a lower level than the estimates. Samsung has been partially impacted by the growing semiconductor shortage, especially for its smartphone business, and the company is likely to face some issues with logistics of its consumer electronics unit.

Daiwa has set a price target of about USD 92 a share for Samsung Electronics, indicating that is an anticipated 53% upside from that of the Thursday’s closing trading value, as it is also expecting a rise in the semiconductor pricing thereby driving the earnings for the tech company. The chip shortage has started beginning its effects over the smartphone industry wherein Samsung and Apple have thus far been shielded due to stockpiling.