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Samsung Electronics First Quarter Earnings
In the wake of a lackluster performance in 2023, Samsung Electronics is anticipating a remarkable turnaround with a projected operating profit of approximately 6.6 trillion Korean won ($4.9 billion) for the first quarter of 2024. This figure represents a staggering 930% increase from the previous year’s 64 billion won ($473 million) and surpasses analyst estimates of 5.4 trillion won ($3.9 billion) according to FactSet. If realized, this would mark Samsung’s highest operating profit since Q3 of 2022.
The company forecasts a sales growth of over 11%, expecting revenues to climb from 63.7 trillion won ($47.1 billion) to 71 trillion won ($52.5 billion) in the same period. Despite withholding specific details, Samsung is scheduled to release a comprehensive earnings report later this month.
Market Trends and Recovery
This positive outlook follows a challenging phase characterized by recurrent profit declines due to sluggish consumer electronics demand and weakening chip sales. The resurgence in chip prices, driven by the burgeoning interest in artificial intelligence, mirrors the recent success of industry peers such as Nvidia and Super Micro Computer.
Rival South Korean chipmaker SK Hynix announced plans to invest over $3.87 billion in establishing a new semiconductor packaging facility and research center in Indiana. This strategic move aims to capitalize on the expanding demand for chips in the United States. Moreover, SK Hynix is earmarking a substantial investment of 120 trillion won ($88 billion) to develop production facilities in a new industrial complex in South Korea’s Gyeonggi Province.
Parallel to this initiative, Samsung is embarking on its own expansion endeavors, with plans to construct multiple sites within the Gyeonggi Province’s industrial complex. The total investment for Samsung’s facilities is projected to reach 360 trillion won ($266 billion).
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