Global smartphone giant Samsung Electronics Co. is anticipated to post better-than-expected earnings for the first quarter following the better-than-expected performance of the Galaxy S7 series, industry analysts forecast Wednesday.
South Korean analysts and industry watchers expect the first-quarter operating profit of the tech giant to reach 6 trillion won (US$5.14 billion), in line with 5.98 trillion won posted a year earlier.
Samsung Electronics headquarters in Seoul (Yonhap)
Analysts earlier expected Samsung's operating profit for the January-March period to drop as low as the 4-trillion-won level, citing challenges in the chip and home appliances segments.
Last week, industry tracker FnGuide reported Samsung Electronics is expected to log 5.17 trillion won in operating profit based on the estimates made by 24 brokerage houses.
The outlook, however, turned positive this week amid signs of a robust sales performance posted by the Galaxy S7 series that was launched earlier this month globally.
The combined shipments of the Galaxy S7 and Galaxy S7 Edge are estimated to have reached 10 million units in only 20 days after the release, which is around a month earlier than their predecessors.
The favorable foreign-exchange conditions will also lend support to the earnings, analysts said. A weaker South Korean won against the greenback adds to the price competitiveness of locally produced products.
Industry watchers said Samsung is expected to enjoy foreign-exchange benefits especially in semiconductor and display segments.
Others, however, said Samsung may still face hurdles due to the sluggish seasonal demand usually observed in the first quarter.
On Wednesday, Samsung Electronics made an official regulatory filing that it is currently estimating the first-quarter performances. The earnings guidance is set to be released on April 7. (Yonhap)