South Korean tech giant Samsung Electronics Co. is expected to chalk up an operating profit of more than 10 trillion won (US$9.15 billion) for the third quarter thanks to the strong performance of its semiconductor business, a market tracker said Sunday.
According to FnGuide, local securities companies' estimates of Samsung's operating profit for the July-September period average 10.28 trillion won, with its sales expected to reach 60.19 trillion won.
Among local brokerage houses, KDB Daewoo Securities Co. estimated the highest operating profit of 10.48 trillion won for the third quarter, FnGuide said.
Analysts predicted Samsung's chipmaking division would power the company's third-quarter performance amid its stagnant smartphone business. Samsung is the world's top maker of memory chips and largest smartphone vendor.
"Samsung's strong memory chip business is expected to power the company's third-quarter growth," said Song Jong-ho, a researcher at KDB Daewoo Securities. "Samsung will particularly benefit from its expanded production of mobile DRAMs."
Lee Se-chul, an analyst at Woori Investment & Securities Co., echoed Song's view. "Samsung's third-quarter operating profit is expected to reach a quarterly high on improved earnings of its semiconductor segment."
Despite a slowdown in growth of the global smartphone market, analysts said, Samsung will likely post relatively good shipments of smartphones.
"Samsung's third-quarter smartphone sales are expected to exceed its guidance of 80 million units," said Hwang Min-sung, an analyst at Samsung Securities Co. "Although sales of its Galaxy S4 smartphones remain in the doldrums, profit margins from other models are not low."
Despite a delayed recovery in European economies, Samsung registered a record quarterly operating profit of 9.53 trillion won in the April-June quarter.