Samsung Electronics Co. on Tuesday projected an operating profit of 8.1 trillion won ($6.8 billion) in the second quarter, faring far better than expected with more than 20 percent growth against the previous quarter and year.

The world’s largest chip and smartphone maker, in its preliminary report for the quarter ended June, said its operating profit likely gained 22.7 percent from a year earlier and 25.6 percent from the previous three months.

Revenue was forecast at 52 trillion won, down 7.36 percent on year and 6.02 percent lower on quarter to suggest improved profitability from recovery in memory chip prices.

The results were well ahead of the market consensus of 6.47 trillion won in operating profit and sales of 51.1 trillion won.

Samsung Electronics shares started Tuesday 1.45 percent higher but closed the day down 2.91 percent at 53,400 won.

Analysts had raised their earnings outlook for the Korean tech behemoth in recent weeks, as the pandemic-induced lockdown drove up demand of memory chips used in data centers. The chip growth likely offset slowed sales of Samsung`s smartphones and home appliances, which suffered from the sharp economic downturn amid broad shutdowns.

Samsung Electronics had weathered the coronavirus storm better than expected also in the first quarter. In the three months ended March, it delivered an operating profit of 6.45 trillion won, up 2.73 percent on year but down 10.6 percent on quarter. Sales rose 4.98 percent from a year ago but fell 8.15 percent from the previous three months to 55.3 trillion won.

A more detailed earnings report would be out later this month.

By Kim Hyo-jin

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