Samsung expects 53% profit boost in second quarter – CNET [CNET]

Samsung expects its operating profit to surge in the second-quarter, likely fueled by higher chip prices and continued consumer demand for electronics during the pandemic. The company also said it benefited from a one-time gain.

The Korean electronics giant predicted Tuesday its operating profit for the three-month period ended June 30 would come in around 12.5 trillion won ($11 billion), an increase of 53% compared with the year-ago period. It also said it expects its revenue to increase by nearly 19% to 63 trillion won ($55.4 billion).

The earnings guidance, released Tuesday ahead of full earnings later this month, didn’t provide specific divisional results.

The quarter would represent a rebound of sorts for the Korean electronics giant, which in the year-ago period reported a 7.4% decline in sales as its consumer-facing businesses struggled while the coronavirus ravaged the globe.

Samsung sells more phones and TVs than any other vendor but said in the first quarter it expected revenue and profit from its mobile unit to decline due to a drop in smartphone sales and shortage of some components.

The company also sells more memory chips than any other company on the planet and likely saw its earnings for the quarter buoyed by strong demand for servers giving a boost the semiconductor market.