London
11 °C
Manchester
Glasgow
11 °C
Dublin
Belfast
Washington
Denver
Atlanta
7 °C
Dallas
Houston Texas
New Orleans
El Paso
25 °C
Phoenix
Los Angeles
8 °C
-7 °C
-10 °C
3 °C
28 °C
32 °C
24 °C
25 °C
Samsung forecast beats market expectations for first quarter / Photo: ANTHONY WALLACE - AFP
Samsung forecast beats market expectations for first quarter
Samsung Electronics on Tuesday posted highest ever figures for its first quarter sales forecast and said it predicted a better-than-expected performance for its profits, beating market expectations.
The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.
The tech giant said in a regulatory filing that its January to March operating profits were expected to rise to 6.6 trillion won ($4.5 billion), down 0.15 percent from a year earlier but up nearly two percent compared to the previous quarter.
This was almost 34 percent higher than the average estimate, according to South Korea's Yonhap news agency, which cited its own financial data firm.
Sales were also seen as increasing to 79 trillion won, a near 10 percent jump from a year earlier, marking the highest first quarter figure on record and the second-highest quarterly revenue ever.
The company did not disclose its net income or the detailed earnings of its business divisions.
Analysts credit the high figures to record sales of the new Galaxy S25 series phone, which was released in February.
The series became the fastest ever Galaxy device to reach one million units sold in the shortest time -- within 21 days.
Shares in Samsung rose more than two percent in Seoul on Tuesday.
The announcement comes a day after the stock market collapsed on a black Monday in Asia and Europe after China retaliated against steep US tariffs.
Experts warn the tariffs could also impact Samsung, as more than half of its smartphones are manufactured in Vietnam, which now faces a 46 percent duty from the US.
"Samsung's consensus-beating first quarter operating profit implies its popular product offerings, such as Galaxy smartphones, could weather a tough business environment, when combined with strong cost control capabilities," Bloomberg Intelligence analysts said.
"Yet the pace of profit growth might slow in 2Q given most of its smartphones are made in Vietnam, which subjects them to US import tariffs. A recovery in memory chip prices is a bright spot."
When asked by AFP, Samsung said it had no comment on the matter.
(L.Thomas--TAG)
