Samsung Electronics has announced its anticipation of a significant increase in operating profit for the first quarter, raising hopes for a strong recovery following a challenging 2023. The South Korean tech giant estimates that its operating profit has surged to 6.6 trillion Korean won ($4.9 billion) in the January-to-March quarter, up from the 0.64 trillion won reported a year earlier, according to an earnings guidance released on Friday. This forecast exceeds the consensus estimates of 5.4 trillion won from FactSet.
Additionally, the company projects that sales have grown by over 11% to 71 trillion won, as stated by the world’s largest memory chip maker. However, no further details were provided. The company is expected to release its detailed earnings results later this month. This optimistic outlook follows four consecutive quarters of declining profits reported by Samsung due to sluggish demand for consumer devices and the chips that power them last year.
Despite this, Samsung is optimistic about the year ahead and mentioned in January its expectations for a resurgence in demand for mobile devices, particularly with the introduction of new products such as AI-powered smartphones. The company also anticipates a recovery in its chip business this year, stating its confidence in overcoming various potential obstacles, including interest rate policies and geopolitical issues.
