Samsung electronics forecast on Friday its best quarterly profit in more than three years in the January-March period beating expectation and putting it on track for record annual earnings on the of a memory chip super cycle.
The apple Inc rival has rapidly recovered from last year’s costly failure of its fire-prone Galaxy Note 7 device , despite a political scandal involving vice chairman Jay Y lee who appeared in seoul court on Friday, dacing charges including bribing ousted president park Geunhye.
The global memory chip leader said first-quarter operating profit was likely 9.9 trillion won $ 8.8 billion compared with an average forcast of 9.4 trillion won from a Thomson Reuters survey of 18 analysts.Revenue rose 0.4 to 50 trillion won, just ahead of analysts’forecasts.
Samsung shares touched a record high of 2.134 million won in the late March on expectations of record annual profit in 2017, as the South Korean tech giant bounced back from the embarrassing with drawal of its Note 7 devices due to combustible batteries.
Investors and analysts expect Samsung to report its best ever quarterly profit in April-June with Galaxy s8 smartphone hitting the market on the 21 april Samsung’s first premium device launch since Note 7’s withdrawal in October.Some researchers fore-cast the S8, which sports the largest screens for samsung high-end smartphones to date,to set a new first-year sales records.
“Samsung will look to recover market share they lost last year and pump up volumes even if they have to spend more to do so,” IBK asset Managements fund manager Kim Hyun-su saidS