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#The Wall Street Journal: Samsung Electronics expects 52% jump in Q4 operating profit

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“#The Wall Street Journal: Samsung Electronics expects 52% jump in Q4 operating profit”

SEOUL — Samsung Electronics Co. is forecasting a roughly 52% jump in its fourth-quarter operating profit from the year-ago period, lifted by resilient demand for memory chips and improved returns from its contract chip-making business.

The world’s largest smartphone and memory-chip maker expects operating profit of about 13.8 trillion South Korean won, equivalent to about $11.4 billion, for the quarter ended Dec. 31. That compares with about 9.05 trillion won for the year-earlier quarter.

Samsung’s
005930,

+1.69%

estimated fourth-quarter operating profit was below market expectations but the electronics giant said the drop reflected a one-time bonus paid to employees.

The Suwon, South Korea-based company estimates it generated 76 trillion in sales, roughly a 24% gain from a year ago and a quarterly revenue record for the company.

Samsung’s top-line boost reflects ongoing strength for chip makers that have enjoyed elevated demand during a long-lasting supply crunch. The company is considered a bellwether for the tech world as it is both a major electronics maker and components supplier to big tech firms including Apple Inc.
AAPL,
-1.67%
and Sony Group Corp.
6758,
-0.45%.

An expanded version of this report appears on WSJ.com.

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