Samsung shares rise after it says third-quarter revenue seemingly rose 28% from a 12 months in the past

Samsung Electronics shares edged larger on Friday after the corporate mentioned its working revenue for the quarter that led to September was seemingly 28% larger than a 12 months in the past at 15.8 trillion Korean gained ($13.26 billion).

That is set to be Samsung’s greatest quarterly revenue in three years — because the third quarter of 2018 when Samsung posted a profit of more than 17.5 trillion won.

Nonetheless, Friday’s determine fell under analysts’ estimates of 16.1 trillion gained, in line with Refinitiv SmartEstimate.

Samsung shares rose greater than 1% in early commerce, however ultimately pared a few of these beneficial properties to commerce at 0.42% larger.

Consolidated gross sales for the quarter seemingly rose to a file excessive of 73 trillion gained — up 9% from a 12 months in the past.

The South Korean tech large didn’t break down how every enterprise unit carried out, together with its major profit-making semiconductor enterprise.

However operations on the world’s largest smartphone and chipmaker have been affected by a global chip shortage and the coronavirus pandemic that shuttered some of its factories around the world.

“Each income and working revenue [are] decrease than our estimate, and market estimate,” mentioned SK Kim, govt director and senior analyst at Daiwa Capital Markets.

Samsung was partially affected by the semiconductor scarcity, particularly in its smartphone enterprise, and sure confronted some logistics issues for its shopper electronics unit, Kim mentioned Friday on CNBC’s “Squawk Box Asia.” However rising semiconductor costs seemingly had a optimistic impression on Samsung’s elements enterprise, he added.

Daiwa has a worth goal of 110,000 gained (about $92) a share for Samsung, implying greater than 53% upside from Thursday’s shut, because it expects larger semiconductor costs to drive the tech firm’s earnings.

Chip shortage is beginning to affect the smartphone industry the place the likes of Samsung and Apple had up to now been shielded from the fallout by stockpiling essential elements like reminiscence chips.

Late final month, Counterpoint Research lowered its smartphone shipment forecasts for the second half of 2021, saying that some smartphone makers are struggling to obtain all of the elements they ordered to make smartphones.

Full outcomes for the September quarter are due later this month.

Samsung shares are down greater than 11% year-to-date.