Samsung logo is seen on an Android phone.
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SINGAPORE – Samsung Electronics said on Friday that operating profit for the quarter ended December was likely to increase by 26% from a year ago to 9 billion Korean won ($ 8.22 billion).
According to Refinitiv SmartEstimate, this was mostly in line with the estimate of 9.1 billion won, according to analysts.
Samsung Electronics’ shares in South Korea jumped 7.12% on Friday.
The company said consolidated sales in the fourth quarter were likely to be 61 trillion won, almost 2% higher than a year earlier. Samsung has not outlined the performance of every business unit, including its key lucrative semiconductor business.
The full results for the December quarter will appear later this month.
Korean won and smartphone sales
According to Daniel Kim, senior research analyst at Macquarie Equities Research, Samsung’s leadership fell behind analysts’ expectations for two reasons.
“One strong Korean has won against some major currencies such as the US dollar and the euro,” he said on CNBC’s Squawk Box Asia on Friday. The other reason is the “disappointing” smartphone sales, which have been quite volatile in recent quarters, Kim said.
But the analyst is strong on the stock. He pointed out that the price of memory chips will turn around this quarter, with the expected average selling prices rising – which will benefit the semiconductor business.
“The duration of the memory boom will probably be much longer than many people think. That’s why I’m very comfortable with my better performance than the stock,” Kim said, adding that Samsung’s one of the cheapest semiconductor stocks worldwide . “
Both operating profit and consolidated sales fell quarter-on-quarter, based on Friday’s guidance.