Samsung announces Q2 results outlook: Revenue $43.6 billion down 7.3% year-on-year

July 7 (Xinhua) — Samsung Electronics Co. on Tuesday released its second-quarter earnings forecast of 8.1 trillion won ($6.7 billion), up 22.7 percent from 6.6 trillion won ($5.2 billion) a year earlier,media reported. At the same time, that figure is well above the market’s consensus estimate of 6.8 trillion won ($5.7 billion).

Samsung announces Q2 results outlook: Revenue $43.6 billion down 7.3% year-on-year

Samsung also estimated second-quarter sales of 52 trillion won ($43.64 billion), down 7.3 percent from a year earlier. However, the figure was slightly higher than the 51.6 trillion won ($43.3 billion) widely expected by analysts. Samsung did not break down the results of its business units and said it would report detailed results later this month.

Analysts said Samsung’s semiconductor business was sure to anchor the company’s overall performance in the second quarter as demand for server chips in the data center remained strong, driven by a “home economy” driven by the new crown. Some analysts expect second-quarter operating profit of 5 trillion won ($4.2 billion) for Samsung’s chip business.

Samsung’s mobile business is expected to fall as the outbreak weakens demand for its smartphones, while its consumer electronics (CE) business is expected to perform flatly. But analysts said Samsung’s mobile and consumer electronics divisions may still perform better than expected, as there were signs of a recovery in demand last month after major countries began to reopen the economy.

For the third quarter, analysts said Samsung’s chip business was unlikely to continue to grow strongly as its main customers could control inventory levels. But they expect a steady recovery in their mobile, display and consumer electronics businesses. (Small)