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Operating profit of Samsung has increased by more than 50% in the quarter

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Operating profit of Samsung has increased by more than 50% in the quarter
April 26
09:00 2018

A South Korean company Samsung Electronics Co has completed the first quarter of 2018 with a record increase in the net profit by 52.11% compared with the same period a year ago.

According to the company’s representatives, due to the good sales of its products and the success of the semiconductor division, the company’s net profit has increased to 10.8 billion dollars. An operating profit has increased by 58% and amounted to 14.5 billion US dollars.

The analysts at S&P Global Market Intelligence assumed that the revenue of the South Korean giant in the first quarter would be 60.2 trillion KRW (approximately $ 56 billion). Over the same period last year, the company sold products worth 47 billion US dollars.

Investors are debating whether the company will be able to maintain a high rate of the financial growth in the near future. Fears are caused by the fact that the market tends to saturation, so the demand for mobile phones can’t grow endlessly.

Experts note that the semiconductor division accounts for 70% of the company’s operating profit as a whole; in absolute terms it was possible to raise $ 10.7 billion from the sale of microchips. The company’s share of revenue accounted for this division is 30% of the total revenue. This is a great proportion, signalling a high profitability of the microchip production.

The stock appreciation of the South Korean technological giant by 2.6% has become the consequence of the strong reporting publication. The company’s capitalization rate grew to 18% over the past year; currently the capitalization is estimated at $ 335 billion.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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