Samsung Electronics sees estimate-beating Q2

Samsung Electronics is expected to outperform market expectations in the second quarter as an upturn in semiconductors boosted the tech giant’s profits to make up for weakness in home appliances and smartphones.

In a preliminary earnings report released Tuesday, Samsung said it posted 8.1 trillion won ($6.8 billion) in operating profit between April and June, far exceeding a market consensus of 6.5 trillion won compiled by FnGuide.

The upbeat results represented a 22.73 percent increase compared to the same period last year and a 25.58 percent jump quarter on quarter, making it the best performance since the fourth quarter of 2018.

Sales were estimated to reach 52 trillion won, again topping a market estimate of 51 trillion won. That figure is down 7.36 percent from over a year ago and a 6.02 percent decline compared to the previous quarter.

The resoundingly strong profit is attributed to robust demand for dynamic random access memory (DRAM) chips for servers and Solid State Drives, according to market analysts.

Corporate clients have driven demand for chip products because so many people around the world are working from home and are consuming online content due to the coronavirus.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]