Samsung Electronics Co. is expected to deliver record quarterly sales and an income close to a historic-high figure from the 2018 chip super cycle peak when it reports October-December earnings guidance on Friday.

The Korean chip giant’s operating income for the quarter ended December 2021 is estimated at 15.07 trillion won ($12.7 billion) and sales at 75.3 trillion, according to the latest analysts’ estimate compiled by local financial market tracker FnGuide.

The sales would be a fresh record high, replacing the all-time high recorded in the third quarter of 2021. Operating income would be off 4.7 percent from the previous quarter but up 66.6 percent from a year ago period.

The company is expected to release its earnings guidance this Friday before the stock market opens at 9 a.m. in Seoul. Shares of Samsung Electronic rose 0.26 percent to trade at 78,500 won in Seoul, as of 12:43 p.m. in Seoul.

Analysts had projected the fourth-quarter operating income at 15.7 billion won until September but adjusted down their estimates amid softening in memory chip price. Despite the downward adjustment, the company would have still performed relatively well as its mainstay chip business is expected to have earned around 9.5 trillion won in the fourth quarter, retreating only 5 percent from the previous quarter.

Based on the latest fourth-quarter earnings estimate, Samsung Electronics would deliver 52 trillion won in operating income on sales of 278 trillion won for full year 2021. Sales would be an all-time high and operating income the best since the 2017-2018 chip super cycle period.

Worries about faster-than-expected chip down cycle have been appeased on strong demand for high-performance chips.

The fall in memory chip prices in the fourth quarter had been milder than expected, observed Daishin Securities analyst Lee Soo-bin, adding that DRAM chip prices are projected to head upward from the third quarter this year. Lee also has revised the earnings projection for full year 2022 to 58.5 trillion won from 52.7 trillion won.

Choi Do-yeon of Shinhan Financial Investment is also upbeat about Samsung Electronics. The company would have offset the fall in chip prices and softening in smartphone shipments with improved non-memory profits and favorable foreign exchange rates, said Choi. The memory chip prices would reverse to upward swing from the second quarter this year to lead the company’s profit improvement, according to Choi’s projection.

The latest market consensus on the chip giant’s 2022 performance is 55.2 trillion won in operating income with 300.6 trillion won sales, up 4.4 percent and 8.1 percent, respectively, from estimated figures of 2021.

By Pulse

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