Samsung Q3 2021 earnings guidance

A South Korean flag, remaining, and Samsung Electronics flag fly exterior the firm’s headquarters in Seoul, South Korea, on July 5, 2019.

Jean Chung | Bloomberg | Getty Visuals

Samsung Electronics shares failed to keep onto earlier gains on Friday immediately after the firm explained its functioning earnings for the quarter that ended in September was most likely 28% bigger than a calendar year ago at 15.8 trillion Korean received ($13.26 billion).

That’s set to be the South Korean semiconductor giant’s greatest quarterly financial gain in a few years — since the 3rd quarter of 2018 when Samsung posted a income of additional than 17.5 trillion gained.

Even now, Friday’s figure fell beneath analysts’ estimates of 16.1 trillion received, in accordance to Refinitiv SmartEstimate.

Samsung shares rose additional than 1% in early trade, but gave up individuals gains to near .14% reduce.

Consolidated income for the quarter likely rose to a history significant of 73 trillion gained — up 9% from a yr in the past.

The South Korean tech giant did not break down how each company device carried out, together with its main earnings-creating semiconductor small business.

But functions at the world’s major smartphone and chipmaker have been afflicted by a world chip lack and the coronavirus pandemic that shuttered some of its factories about the world.

“Both revenue and operating financial gain [are] lessen than our estimate, and marketplace estimate,” explained SK Kim, govt director and senior analyst at Daiwa Funds Markets.

Samsung was partly afflicted by the semiconductor shortage, specifically in its smartphone small business, and likely confronted some logistics challenges for its customer electronics unit, Kim explained Friday on CNBC’s “Squawk Box Asia.” But mounting semiconductor selling prices likely had a positive affect on Samsung’s parts small business, he added.

Daiwa has a price goal of 110,000 won (about $92) a share for Samsung, implying much more than 53% upside from Thursday’s shut, as it expects larger semiconductor selling prices to generate the tech firm’s earnings.

Chip scarcity is beginning to impact the smartphone field exactly where the likes of Samsung and Apple had so much been shielded from the fallout by stockpiling important components like memory chips.

Late past month, Counterpoint Study reduced its smartphone shipment forecasts for the next 50 percent of 2021, stating that some smartphone makers are battling to receive all the factors they ordered to make smartphones.

Complete final results for the September quarter are because of later on this thirty day period.

Samsung shares are down a lot more than 11% 12 months-to-day.

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