Samsung's operating profit to exceed $3.7 bln in 1Q 2024: market analysis

By Park Sae-jin Posted : March 19, 2024, 14:43 Updated : March 19, 2024, 14:43
Courtesy of Samsung Electronics
[Courtesy of Samsung Electronics]

SEOUL -- A market analyst firm predicts that Samsung Electronics' operating profit for the first quarter of 2024 is likely to exceed five trillion won ($3.7 billion), signaling a positive recovery trend in both the semiconductor and smartphone businesses.

According to FN Guide, a securities information company, Samsung's first-quarter operating profit consensus (an average estimate based on data released by three securities firms over three months) has once again increased to 4.7 trillion won, compared to the previous week's 4.6 trillion won. This marks the first time the tech giant has seen its operating profit surpassing four trillion won in five quarters.

Following a challenging period of sluggish global semiconductor sales, Samsung reported its lowest performance of 649 billion won in 1Q 2023. However, recent signs of recovery, including increased chip prices, indicate a positive outlook for the company.

Some securities firms anticipate that Samsung's operating profit for 1Q 2024 will exceed five trillion won, outperforming the consensus. This optimism stems from the faster-than-anticipated recovery rate of semiconductor prices and strong sales performance of the latest phones, including the Galaxy S24 series, compared to the previous S23 series.

Expectations for a profit turnaround in the memory semiconductor business are also on the rise. NAND flash memory prices, which previously struggled to generate profits due to oversupply, are estimated to have increased by an average of 23 percent in 1Q 2024, surpassing the recovery of DRAMs (16 percent).

"The sharp rebound in memory prices surpasses expectations, increasing the likelihood of a profit turnaround," SK Securities researcher Han Dong-hee said in a statement on March 19.
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