Samsung Electronics expected to report a 45% growth in quarterly profit

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Apr 5, 2021
  • Samsung Electronics expected to report a 45% growth in quarterly profit.
  • The South Korean multinational launched its Galaxy S21 series in January.
  • Samsung Electronics' TV & home appliance profit likely jumped over 100%.

Samsung Electronics (KRX: 005930) profit in the quarter from January to March likely jumped 45% on a year over year basis as demand for smartphones, television sets, and other home appliances remained robust in recent months.

Samsung opened at £54.89 per share on Monday and is currently trading at a per-share price of £54.64. In comparison, the stock had started the year at a lower £53.10 per share. Learn more about how to pick winning stocks.

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The South Korean multinational’s chip division earnings, however, took a hit after a storm disrupted production at its plant in the United States. Samsung is also expected to see an impact on its financial performance due to the COVID-19 driven global shortage of semiconductors.  

Samsung launched its Galaxy S21 series in mid-January

According to Refinitiv, analysts now expect Samsung to report £5.9 billion of quarterly operating profit, which represents the electronics company’s highest first-quarter operating income level since 2018. Experts forecast a 12% annualised in its revenue in the recent quarter.

In mid-January, Samsung launched its Galaxy S21 series – over a month earlier than initially planned. The move, however, helped its mobile division report stand-out performance in the recent quarter.

According to Counterpoint Research, the world’s largest smartphone manufacturer is likely to have secured about 23% of the global market between January and March. A milestone that’s largely attributed to the launch of Galaxy S21 at a cheaper-than-usual price. Samsung priced its S21 roughly £144 lower than S20.

In comparison, Samsung’s market share stood at 20% in the comparable quarter of last year, and at 16% in the previous quarter. Operating profit from high-margin accessories, as per the analysts, is expected around £2.7 billion – an over £640 million increase from last year.

Samsung’s TV and home appliance profit likely jumped over 100%

Operating profit from the South Korean company’s TV and home appliance segment is likely to register at £640 million or over 100% higher than the same quarter last year. Samsung’s semiconductor business quarterly profits, on the other hand, are expected close to 20% lower at £2.3 billion.

Samsung will publish its preliminary results for the first quarter on Wednesday. In January, the Seoul High Court sentenced Samsung Electronics’ Vice Chairman Jay Y. Lee to thirty months in prison on bribery charges.

At the time of writing, Samsung Electronics is valued at £370 billion and has a price to earnings ratio of 22.23.

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