Samsung bets on improved second half year earrings

South Korea’s Samsung Electronics has forecast an improved second half year earnings, after posting a weaker than expected first quarter.

Samsung Electronics has said it predicts its second half year results will pick up in memory chip and smartphone sales, after it posted its weakest Q1 profit in more than two years.

The electronics company also warned of more short-term pain in the second quarter, forecasting memory chip prices would likely decline further.

‘For the second half of 2019, the company expects memory chip demand for high-density products to increase, but uncertainties in the external environment will persist,’ Samsung said in a statement on Tuesday.

Samsung posted its operating profit of $5.4 billion in the quarter ending March, marking its smallest since 2016.

Revenue fell 13.5%, in line with its earlier estimates.

Samsung's semiconductor business booked a 64% fall in operating profit, while the display business logged 560 billion won in losses.

It comes amid a downturn in the global smartphone market and a fall in demand from data centres.

Samsung said its server DRAM chip customers would start rebuilding inventories from the end of the second quarter, while new smartphone models would support sales of mobile DRAM.

Mobile profits fall

The South Korean phone maker said its mobile business posted a 40 % drop in operating profit to 2.3 trillion won in the first quarter.

Samsung said it hopes to boost its mobile business with its latest handset, featuring a big, bending screen.

However, Samsung had delayed global sales of the foldable phone after reviewers discovered problems with the display.

The company said it expects demand for flexible display panels would likely pick up and sales for its smartphones were also expected to rise in the second half of 2019. The company predicts growth to be led by new models in all segments including the low-end Galaxy A series.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.