Samsung beats first quarterly estimate on solid chip sales, says profit likely $5.2bn

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Samsung beats first quarterly estimate on solid chip sales, says profit likely $5.2bn

On Tuesday, the 7th of April 2020, Samsung Electronics Co. Ltd., the Suwon-based South Korean electronics industry conglomerate and the world’s No. 1 smartphone vendor, had told in a statement that the company's Q1, 2020, earnings’ had somehow managed to beat Wall St.

estimates and had posted a slight gain on a year-on-year basis, as robust sales of its chips had offset a dramatic downfall of its smartphone and television sales amid a global-scale lockdown. In point of fact, as the US semiconductor industry giants such as Intel Corp., Qualcomm and Nvidia had been evading the growing sufferings of the consumer electronics businesses by benefitting from a higher demand of chips for data centres and laptop manufacturers, global semiconductor industry titan Samsung Electronics had not been alienated as well.

Besides, according to Samsung Electronics’ quarterly earnings report for Q1, 2020, the global electronics industry leader was quoted saying that its operating profit would likely to be $5.2 billion, compared to a $5.1 billion at the same time a year earlier, while the company’s net revenue rose by 5 per cent to a lump sum of $45 billion, which had been well in line with the analysts’ estimates.

Meanwhile, adding that the South Korean electronics industry megalith would likely to face off a steep downturn over the second quarter of the year with a number of major economies in the bloc alongside the United States remaining in lockdown, an analyst at Meritz Securities, Kim Sun-woo said following the Tuesday’s (April 7th) announcement, “Even though Samsung’s mobile business was hit by the coronavirus outbreak this quarter, it will likely face bigger challenges in the second quarter - now that the United States and Europe have become the hardest-hit countries. ”