Samsung announced its earnings guidance for the first quarter of 2024 on Friday, saying that with the help of the AI wave, the company’s revenue has begun to rebound from a severe decline. It is estimated that Sales reached 71 trillion won (Note: currently approximately 381.27 billion RMB), and operating profit during the same period was approximately 6.6 trillion won (currently approximately 35.442 billion RMB).
Earnings Forecast: In financial reporting, earnings guidance, or simply guidance, is a publicly traded company’s official forecast of its own near-term profits and losses, expressed as a dollar amount per share.
Compared to Q1 2023, sales are estimated to rise 11.37% and operating profit growth is estimated to hit 931%. Compared to Q4 2023, sales increased 4.75% sequentially and operating profit increased 134%.
Just after Samsung released its profit forecast, it wasn’t enough to cheer up investors, with Samsung’s shares falling 1.3% in early trading on Friday, matching South Korea’s 1.1% decline.
Park Sung-soon, an analyst at Korea Investor Relations Service, said:
NAND flash memory chip stock valuations may have improved as revenue was largely in line with expectations but operating profit beat expectations. Demand for NAND has improved, which may also boost margins.
Initial response to the new Galaxy S24 smartphone has also been positive thanks to the artificial intelligence on the device, so there could be an impact if sales of the high-margin premium smartphone exceed expectations.
Samsung will announce detailed earnings on April 30.
