Reminiscence chips and smartphones assist Samsung report robust first quarter earnings

In the course of the quarter, Samsung took in 71.92 trillion Korean gained ($52.3 billion) in income, 12.81% greater than income it generated through the 2023 first quarter. It additionally topped estimates of 71.04 trillion Korean gained. The working income got here to six.61 trillion Korean gained ($4.8 billion) topping estimates of 5.94 trillion Korean gained. Web revenue rose 9.4% to six.75 trillion Korean gained ($4.9 billion). Earnings per share for Q1 rose to 975 Korean gained per share (.71 US) from 206 the 12 months earlier than.

Samsung Show had a tough first quarter because of weak seasonality and difficult competitors. Samsung expects average development for its Show unit because of the rising OLED penetration price. The corporate hopes to maintain this price rising by persevering with to cut back the prices of manufacturing OLED screens. Persevering with to decrease the manufacturing value of OLED panels might assist OLED take the place of extra LCD screens within the inflexible show smartphone market.

Samsung Foundry diminished its losses throughout Q1 and its order backlog reached a file throughout Q1. It hopes to finish the event of its 2nm course of node this 12 months whereas mass-producing chips utilizing its second-generation 3nm node later this 12 months. Samsung’s semiconductor unit will be part of everybody on this planet and acknowledge AI as a significant development alternative this 12 months.

The unit that produces smartphones noticed gross sales rise 5% to 33.53 trillion Korean gained ($24.4 billion) whereas income declined 44% on an annual foundation to three.51 trillion Korean gained ($2.5 billion). The corporate’s reminiscence chip enterprise went from a 4.58 trillion gained loss in Q1 final 12 months and a 2.18 trillion Korean gained loss throughout final 12 months’s This autumn to return to profitability with a revenue of 1.91 trillion gained ($1.4 billion) through the first quarter of this 12 months.

In a press release made on Tuesday, Samsung stated, “The corporate posted KRW 71.92 trillion in consolidated income on the again of robust gross sales of flagship Galaxy S24 smartphones and better costs for reminiscence semiconductors. Working revenue elevated to KRW 6.61 trillion because the Reminiscence Enterprise returned to revenue by addressing demand for top value-added merchandise.”

The robust first quarter report led the inventory to rise 1,200 Korean gained on Tuesday, or 1.56% to 77,900 Korean gained ($56.56).