 |
Photo courtesy of Samsung Electronics |
[Alpha Biz= Kim Jisun] Samsung Electronics is expected to post a double-digit drop in operating profit for the second quarter, primarily due to continued weakness in its high-margin high-bandwidth memory (HBM) business and ongoing losses in the non-memory segment. A stronger Korean won in the latter half of Q2 also negatively impacted earnings.
According to industry sources on July 6, Samsung is estimated to have recorded approximately KRW 76 trillion in revenue and just over KRW 6 trillion in operating profit during Q2. While revenue shows a modest year-over-year increase, operating profit is expected to have declined by more than 30% compared to the KRW 10.44 trillion posted in Q2 2023.
Noh Geun-chang, head of research at Hyundai Motor Securities, stated, “While fixed prices for commodity DRAMs have generally risen, the sharp decline in the KRW/USD exchange rate led to lower-than-expected earnings.”
Samsung Electronics will announce its preliminary Q2 earnings on July 8. Analysts expect a potential rebound in performance starting in the third quarter.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
